Qatar asks US to probe 'financial warfare' by UAE bank

Qatar has asked the US to investigate reports that the American subsidiary of the largest bank in the UAE is manipulating the Qatari currency to harm the country's economy amid a diplomatic dispute with Saudi Arabia.

The Central Bank of Qatar has sent a letter to the US Treasury, urging it to investigate NBAD Americas, the US subsidiary of the largely state-owned First Abu Dhabi Bank (FAB).

"We believe NBAD has participated in an extraordinary and unlawful scheme to wage financial warfare against Qatar, including through the manipulation of Qatari currency and securities markets," Reuters quoted the letter as saying.

"These actions should be halted immediately, and we ask that you investigate whether NBAD has directly or indirectly supported the manipulation of Qatar's markets, including through NBAD America's dollar-clearing or correspondent banking services in the United States," the letter added.

In a second letter, the Qatari central bank's international law firm Paul, Weiss, Rifkind, Wharton & Garrison asked the US Commodity Futures Trading Commission (CFTC) to probe possible manipulation of the Qatari riyal.

"NBAD's quotes - and those of other banks involved in the manipulation - were likely all bogus," the letter to the Treasury said.

“There is evidence that at the same time NBAD was providing quotes with great frequency and at rates lower than the official rate of 3.64, its traders were unwilling to actually transact at those prices,” it said. 

SS