Central Bank of Kuwait closes all Gulf Bank currency derivatives trades

29 October 2008
The Central bank of Kuwait has announced that it has closed all the currency derivatives trades that Gulf Bank was involved in on behalf of its clients, following the losses incurred by the bank as a result of these positions.

The news comes following a statement from the bank's new chairman Qutaiba al-Ghanim, in which he says that the exact losses at Gulf Bank will be revealed by the end of October.

The losses relate to trades on the euro-dollar exchange rate, which clients of the bank refused to settle.

This forced Gulf Bank to approach the Central Bank of Kuwait to help fill the funding shortfall (MEED 28:10:08).

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