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Mon 11 Jul 2016 01:04 PM

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Central Bank of Bahrain to take legal action against exchange firms violating law

Companies reportedly charging up to 545 fils to the British pound, which is valued at 500 fils

Central Bank of Bahrain to take legal action against exchange firms violating law

The Central Bank of Bahrain (CBB) has said it will take legal action against exchange companies that violate sector laws.

The verdict comes as Bahrain’s currency exchange houses face instability in the buying and selling of the British pound following the UK’s decision to leave the European Union.

Some companies have been charging between 522 fils to 545 fils to the pound, which is valued at 500 fils, reported Gulf Daily News.

“The CBB is constantly following up with exchange companies to ensure availability of the sterling at rates that suit the prevailing levels of the pound,” said the bank in a statement. “The local market exchange rates are different from Interbank exchange rates announced in news and various media channels.”

It is believed the high demand for the currency is due to customers hoping it will recover from its 30-year low against the US dollar following the country’s exit from the EU.

The CBB has been urged to issue an official statement on currency rates in Bahrain and tighten control on companies exploiting the currency’s high demand, said the report.

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