(MENAFN) Banks in KSA and the UAE will be affected if they cut financial relations with Qatar, as proclaimed Bank of America-Merrill Lynch.
Meanwhile, these large holdings would directly or indirectly make material mark-to-market losses to KSA and the UAE banks as they could show 2.5 percent to 5 percent of banking sector assets.
Moreover, Qatar's sovereign wealth fund's global assets allow it to endure outflows and defend the peg.
However, Qatar Central Bank has sufficient foreign currency reserves to meet all needs and reaffirmed that liquidity in the banking sector remains strong.
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