Monday 21 March 2011

Outflows add pressure to Bahrain woes - The National

Capital outflows from Bahrain have begun to put pressure on the smallest economy in the Gulf and could lead the kingdom's central bank to step in to support the currency.

Staff from international banks, law firms and other companies have relocated to Dubai and parts of Europe as a blockade prevented access to the financial centre, which is estimated to account for a quarter of Bahrain's economy.

This has put pressure on the dinar as office workers convert cash to their home currencies and withdraw it from local accounts.

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