Foreign Exchanges in several countries boycott Qatari Riyals

Several banks, foreign exchange companies in the Gulf have refused to exchange Qatari riyals and also stopped accepting them, following the economic blockade announced by Saudi Arabia and its Arab allies.

The currency blockade has caught many people off guard as foreign exchanges in many countries have also refused to exchange riyals citing a lack of demand for the currency. Meanwhile, rating agencies have lowered Qatar's credit rating and put it on "negative watch" as a result of the boycott of Qatar by a group of Arab countries, Sputnik reported.

Iran, with which Qatar shares a natural gas field in the Persian Gulf, and Turkey, which has a military base in Qatar, have sent deliveries of food and other supplies to Qatar by sea.

On June 5, Saudi Arabia, the UAE, Bahrain, Egypt, Yemen and Libya cut diplomatic ties with Qatar, alleging that the Gulf nation supports terrorists and militant groups with ties to Iran.

Saudi Arabia closed the crossing at Qatar's only land border, which Qatar uses to import about 40 percent of its food supplies.

Qatar's Arab neighbors also denied permission for the national carrier Qatar Airways to use their airspace, and airline carriers from the UAE canceled all flights to Doha.

Iran, with which Qatar shares a natural gas field in the Persian Gulf, and Turkey, which has a military base in Qatar, have sent deliveries of food and other supplies to Qatar by sea.

While the Qatari riyal has been officially pegged at $3.64 to the dollar since 2005, offers for the currency have fallen below the fixed rate due to a fall in demand.

Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt has issued an ultimatum with 13 demands, accusing Doha of supporting extremist groups.

Recently, United States President Donald Trump discussed the Qatar- Gulf dispute with Turkish President Recep Tayyip Erdogan but Turkey has backed Doha in its rift with the Arab states and is seeking to mediate the crisis.

-ANI