Foreign exchange companies and banks are refusing to buy Qatari riyals after rating agencies put the country’s credit rating on “negative watch.”
The decision comes after several Arab countries such as Saudi Arabia, the UAE, and Bahrain decided to cut diplomatic ties with Doha.
According to Doha News, residents travelling to Europe, the US, and Asia contacted the news website saying that they were unable to exchange Qatari currency.
Several news reports also suggested that exchanging Qatari riyals is also a widespread issue for those visiting countries such as India, Sri Lanka and Pakistan.
Not all countries are affected however, visitors can still exchange their currency in countries such as Jordan and Lebanon.
In comments to Doha News, financial analyst of international money transfer firm Imperial FX, Omar Mohammed, said that there an “increased concern” for Qatar’s financial community.
“Oil prices have fallen and experts are now voicing their concerns over the sustainability of Qatar’s energy revenues,” he added.
According to Bloomberg data, the riyal recently reached its weakest recorder level at 3.76 per dollar, despite Qatar Central Bank’s attempts to fic it at around 3.64.
