Some Egyptian banks have halted dealings with Qatari banks but they are continuing to open import letters of credit (L/Cs), four Cairo-based bankers have told the Reuters news agency.

The banks were responding to Cairo's announcement that it had cut diplomatic relations with Qatar, accusing the Gulf state of supporting terrorism.

Coordinated action

Egypt's announcement on Monday was coordinated with similar moves by Saudi Arabia, the UAE and Bahrain.

Cairo did not say if the measure included a suspension of trade with Qatar, and the trade ministry did not immediately respond to questions on this.

L/Cs spared

The four bankers said the halt to transactions with Qatari banks came on internal orders from management at their banks, and excludes the opening of import L/Cs.

Some banks have stopped accepting Qatari currency while others are halting some treasury transactions, the bankers said.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.