Egypt has returned to Qatar US$2 billion that the Gulf state had deposited with Egypt’s central bank, after negotiations to convert the funds into three-year bonds broke down, central bank Governor Hisham Ramez said by telephone on Thursday.
Qatar had sent Egypt US$3 billion in May, of which it converted US$1 billion into three-year bonds.
Cairo’s relations with Qatar deteriorated after the Egyptian army deposed President Mohamed Morsy on 3 July. Qatar had been a firm backer of Morsy’s Muslim Brotherhood and lent or gave Egypt US$7.5 billion during the year he was in power.
