Manama: The Central Bank of Bahrain (CBB) has pledged to take legal action against exchange companies that violate laws governing
the sector.
Bahrain’s currency exchange houses have been witnessing unprecedented “chaos” in buying and selling of the British pound following the UK’s vote to leave the
European Union.
The GDN reported that while sterling is valued at around 500 fils to the pound, some exchange companies were reportedly charging as much as 522 fils to 545 fils.
Instability in currency exchange rates following Brexit has impacted the value of the British pound in Bahrain’s market, the CBB said in a statement yesterday.
“CBB is constantly following up with exchange companies to ensure availability of the sterling at rates that suit the prevailing levels of the pound.
“The local market exchange rates are different from Interbank exchange rates announced in news and various media channels,” the
statement added.
Our sister paper Akhbar Al Khaleej earlier reported that in a survey covering about 10 exchanges across the country, almost half said they were unable to provide sterling for the time being.
Others asked about the amount of currency required and appeared to quote prices depending on the
desired amount.
The news had raised concerns that companies are seeking to exploit high demand for sterling, with customers apparently rushing to buy pounds in the belief that the currency will recover from the shock of Brexit – which saw the pound fall to a more than 30-year low against the US dollar.
“Traders and travellers to London have urged the Central Bank of Bahrain to issue an official statement on currency rates in Bahrain, toughen control on market manipulators and shut down abusive companies,” said
the report.
&uuid=(email))