The Qatari Riyal (QAR) and the Saudi Arabia Riyal (SAR) have become full settlement currencies in Clearstream, the International Central Securities Depositary (ICSD) part of Deutsche Börse Group.
This move comes in response to growing demand by investment banks and issuers to issue and settle securities denominated in QAR and SAR.
The Qatari Riyal and the Saudi Arabia Riyal join the Bahraini Dinar (BHD) for which Clearstream was the first International Central Securities Depositary to accept as settlement currency as early as June 2007 and the United Arab Emirates Dirham (AED) in 2006. The Qatari Riyal had been a denomination currency since June 2007.
Robert Tabet, Head of Clearstream for the Middle East and Africa, said "We are very pleased to be able to offer the QAR and the SAR as full settlement currencies in Clearstream on a direct basis. Coming after the acceptance of the BHD and the AED, this shows the growing importance of financial activity in the region as well as Clearstream's commitment to help its customers accompany this growth". Clearstream has had an office in Dubai for over 11 years to service financial institutions in the Middle East and Africa.
With this announcement, there are now 43 currencies eligible for settlement in Clearstream and 51 denomination currencies (ie only for the denomination of a bond issues).
The QAR and the SAR are not Bridge eligible currencies. The Bridge is an electronic communications link which facilitates the efficient settlement of securities transactions between counterparties in Clearstream Banking Luxembourg and Euroclear Bank.