Capital flight from Bahrain is starting to pressure its currency and threaten its position as a Gulf financial centre, though it looks likely to avoid a full-blown currency crisis for now.
The small non-OPEC oil producer, where nearly $10 billion in mutual funds was parked last year, is the first Arab banking hub to be hit directly by the political instability sweeping across the Middle East and North Africa.
It is struggling to contain its worst unrest since the 1990s after majority Shi'ite protesters took to the streets, prompting Saudi Arabia to send in troops in an effort to restore order. As many as six people were killed on Wednesday.
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