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Report: Qatar asks banks for more data in probe into possible riyal manipulation

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Report: Qatar asks banks for more data in probe into possible riyal manipulation

The Qatar Central Bank has asked banks for more data on U.S. dollar-Qatari riyal trades as part of its investigation into suspected attempts to manipulate the local currency amid a standoff between the country and a group of Arab states, Reuters reported, citing sources familiar with the matter.

The central bank has reportedly sent requests to financial institutions in recent weeks asking them to provide it with information on dollar-riyal swap positions as well as details on current accounts of foreign lenders operating in the country and the foreign exchange rates used for dealings on these accounts, among other things, the sources said.

The regulator is seeking to determine whether any banks were linked to trades that had pushed the value of the Qatari riyal weaker than a range of 3.64 to 3.65 against the dollar, according to the report.

Like most Gulf nations, Qatar has kept its currency pegged at a fixed rate to the dollar, but after Saudi Arabia, Bahrain, the United Arab Emirates and Egypt severed ties with it in June 2017, accusing it of supporting terrorism, the Qatari riyal traded several percentage points weaker than its 3.64-per-dollar pegged rate in offshore markets, Reuters noted.

In December 2017, the regulator said it began a probe into alleged attempts by other countries to harm the Qatari economy by manipulating its currency, securities and derivatives markets. In March, it called on U.S. authorities to investigate First Abu Dhabi Bank PJSC unit NBAD Americas on suspicion of manipulating the Qatari riyal. The UAE-based parent denied the allegations.

Foreign banks that are licensed to operate in Qatar include HSBC Holdings PLC, Standard Chartered PLC, BNP Paribas SA, UAE's Mashreqbank PSC, Jordan's Arab Bank PLC and Iran's Bank Saderat Iran, Reuters noted, citing data on the central bank's website.

As of May 14, US$1 was equivalent to 3.64 Qatari riyal.