Payment and remittance transactions in the United Arab Emirates financial system are operating as normal, the central bank said on Wednesday after the UAE's diplomatic rift with Qatar caused uncertainty over some banking deals.

The UAE financial system is positioned to support normal transactions and the central bank will continue to closely monitor the situation and any developments, taking any necessary steps to maintain stability, the central bank said in a statement.

Some Gulf banks are starting to hold off on business with Qatari banks after the governments of the UAE, Saudi Arabia and Bahrain cut diplomatic ties and transport links with Doha on Monday, accusing Qatar of backing terrorism

Source: Khaleej Times