MSCI may use offshore FX rates for Qatar stocks as sanctions hurt riyal access | ZAWYA MENA Edition:
"International equity index compiler MSCI may shift to using offshore foreign exchange rates to value Qatar's equities market because sanctions against Doha have made it more difficult for foreign investors to obtain riyal onshore, MSCI said. If it goes ahead, the shift could lead to changes in the weighting of Qatari stocks in MSCI's emerging market index, which is used as a benchmark by funds managing around $1.6 trillion of assets. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar in June. As a result many Gulf and other foreign banks reduced their business with Qatari banks, distorting the foreign exchange market, where onshore and offshore rates have diverged. "
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