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9 April 2019 10:10 am

Qatar files lawsuits in London and New York against financial institutions that manipulated Qatari Riyal

nabeela
nabeela
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Qatar

Qatar today announced that it has filed legal proceedings in New York and London taking actions against financial institutions that engaged in manipulation of the Qatari Riyal, bonds issued by the State of Qatar, and related financial instruments, the Government Communications Office said in a statement today.

A lawsuit was filed against Banque Havilland in London for its role in designing a plan to attack Qatar's currency and its financial markets. It also names as a defendant the individual at Banque Havilland, Vladimir Bolelyy, who was responsible for preparing the plan to attack Qatar's financial markets. In addition, a separate lawsuit was filed in New York against two financial institutions that engaged in financial market manipulation, First Abu Dhabi Bank and Samba Bank, the statement added.

It said that the filing of the lawsuits follows an investigation into market manipulation announced by Qatar in December 2017, and represent the first legal actions that Qatar has brought based on the findings of that investigation. The investigation is continuing and the State may bring actions against other bad actors in due course.

In June 2017, United Arab Emirates (UAE), Saudi Arabia, Bahrain and Egypt imposed an illegal blockade on the State of Qatar and took a number of actions designed to damage Qatar, its economy, and its residents. As a result, Qatar initiated a number of legal proceedings before the International Court of Justice, International Civil Aviation Organisation and World Trade Organisation, the statement said.

In July 2018, the International Court of Justice issued a ruling indicating provisional measures in favour of Qataris who been discriminated by UAE cohesive measures, it noted.

The statement said that the actions undertaken by the entities that Qatar has now sued were illegal and were designed to destabilise Qatar's currency and financial markets in order to undermine confidence in Qatar's economy and, by doing so, to cause damage not just to Qatar but also to domestic and international investors.

Their actions were deliberately designed (and intended) to force Qatar to take measures to counter this financial market manipulation. The defendants in the New York legal action directed their manipulative conduct at New York by among other things, submitting fraudulent quotes to foreign exchange platforms based in New York, to manipulate New York-based indices, and disrupt financial markets in New York, where significant Qatari assets are held and many investors in Qatar are located. As a result of the defendants manipulative conduct, Qatar, and many investors suffered harm in New York, the statement added.

The manipulation involved a number of financial institutions, two of whom are already named as defendants in the legal action in New York, and Qatar may bring additional actions against other bad actors in due course.

This financial market manipulation violated all norms of acceptable conduct and will not be allowed to go unchecked. While the financial market manipulation failed in its efforts to undermine confidence in the Qatari Riyal and Qatar, it nonetheless caused economic losses and Qatar is compelled to take the actions necessary to call to account the financial institutions that engaged in illegal market manipulation, the statement underlined. (QNA)