Palestine Monetary Authority: Israeli banks reject shekel transfers from the West Bank

JERUSALEM – The Palestinian Monetary Authority said Israeli banks are refusing to accept shekel transfers from Palestinian banks in the occupied West Bank in a move that could soon deprive Palestinians of access to vital goods and services.

There was no comment from the office of Israeli Finance Minister Bezalel Smotrich, who in June extended an exemption that allowed Israeli banks to cooperate with Palestinian banks in the West Bank.

The Monetary Authority said, “Banks operating in Palestine will not be able to finance trade operations and pay for goods and services to Israeli companies and suppliers in the coming few days. The continued refusal of the Israeli side to transfer the shekel deprives Palestinian banks from feeding their accounts in Israeli correspondent banks, which will have a direct impact on the ability of the public and private sectors to finance imports of goods and services coming from Israel.”

She added that this would deprive Palestinians of vital goods and services because they would be unable to pay for them through official banking channels.

Violence has been escalating in the West Bank since the outbreak of war last October between Israel and Palestinian factions in the Gaza Strip. At the same time, the West Bank is heading towards a financial crisis.

Smotrich heads a pro-settlement party and is a partner in Prime Minister Benjamin Netanyahu’s coalition government.

Reuters