Latest news with #PalestinianBanks
Arab News
2 days ago
- Business
- Arab News
Smotrich's move to cut bank ties risks Palestinian supply crisis
JERUSALEM: An Israeli move to cut off cooperation with Palestinian banks could halt the supply of essential goods such as food and fuel to the Palestinian territories, the Palestinian Monetary Authority said on Wednesday. Israeli Finance Minister Bezalel Smotrich ordered the cancelation of a waiver on cooperation between Israeli and Palestinian banks on Tuesday. This move risks the Palestinian banking system, trade, and overall economy. Israeli banks Hapoalim and Israel Discount Bank work with Palestinian banks. Some 53 billion shekels ($15.2 billion) were exchanged at Palestinian banks in 2023, official data show. Israeli Finance Minister Bezalel Smotrich ordered the cancelation of a waiver on cooperation between Israeli and Palestinian banks on Tuesday. Canceling the waiver would require approval by Israel's security Cabinet. No date for a vote has been set, and it was not clear whether it would pass. The PMA said it was following developments and warned that such disruption posed a serious threat to Palestinian access to basic goods and services. It noted it has ongoing coordination with the political leadership and international community to safeguard correspondent banking relationships. 'These efforts are vital to ensuring the continuity of commercial transactions and the payment of essential imports and services, including food, electricity, water, and fuel,' the PMA said. Smotrich said his decision came against the 'delegitimization campaign' by the Palestinian Authority against Israel globally. The waiver had allowed Israeli banks to process shekel payments for services and salaries tied to the Palestinian Authority, without the risk of being charged with money laundering and funding extremism. Without it, Palestinian banks would be cut off from the Israeli financial system. The PMA said depositors' funds within the Palestinian banking sector are secure and that the banking system remains integrated with the global financial network through a broad range of correspondent banks and continues to provide services to individuals and businesses domestically and internationally. Smotrich, under US pressure, had in late 2024 signed a waiver to extend cooperation between Israeli and Palestinian banks through November 2025. In the past, Smotrich sought to end the waiver but ultimately signed it due to pressure from the US and Prime Minister Benjamin Netanyahu. His latest decision came hours after the UK and four other nations imposed sanctions on him and another far-right minister, accusing them of inciting violence in the West Bank. The sanctions included a freeze on assets and travel bans. Israel's Foreign Minister Gideon Saar said the action by the five countries was 'outrageous.'
Zawya
2 days ago
- Business
- Zawya
End of cooperation with Israeli banks may harm Palestinian economy, Palestinians say
An Israeli move to cut off cooperation with Palestinian banks could halt the supply of essential goods such as food and fuel to the Palestinian territories, the Palestinian Monetary Authority (PMA) said on Wednesday. Israeli Finance Minister Bezalel Smotrich on Tuesday had ordered the cancellation of a waiver on cooperation between Israeli and Palestinian banks, a move that puts the Palestinian banking system, trade and overall economy at risk. Israeli banks Hapoalim and Israel Discount Bank work with Palestinian banks. Some 53 billion shekels ($15.2 billion) were exchanged at Palestinian banks in 2023, official data show. Cancelling the waiver would require approval by Israel's security cabinet. No date for a vote has been set and it was not clear whether it would pass. The PMA said it was following developments and warned that such disruption posed a serious threat to Palestinian access to basic goods and services. It noted it has ongoing coordination with the political leadership and international community to safeguard correspondent banking relationships. "These efforts are vital to ensuring the continuity of commercial transactions and the payment of essential imports and services, including food, electricity, water and fuel," the PMA said. Smotrich said his decision came against the "delegitimization campaign" by the Palestinian Authority against Israel globally. The waiver had allowed Israeli banks to process shekel payments for services and salaries tied to the Palestinian Authority, without the risk of being charged with money laundering and funding extremism. Without it, Palestinian banks would be cut off from the Israeli financial system. The PMA said depositors' funds within the Palestinian banking sector are secure and that the banking system remains integrated with the global financial network through a broad range of correspondent banks and continues to provide services to individuals and businesses domestically and internationally. Smotrich, under U.S. pressure, had in late 2024 signed a waiver to extend cooperation between Israeli and Palestinian banks through November 2025. In the past, Smotrich sought to end the waiver but ultimately signed it due to pressure from the U.S. and Prime Minister Benjamin Netanyahu. His latest decision came hours after the United Kingdom and four other nations imposed sanctions on him and another far-right minister, accusing them of inciting violence in the West Bank. The sanctions included a freeze on assets and travel bans. Israel's Foreign Minister Gideon Saar said the action by the five countries was "outrageous". ($1 = 3.4906 shekels)
Al Arabiya
2 days ago
- Business
- Al Arabiya
End of cooperation with Israel's banks may harm Palestine economy, Palestinians say
An Israeli move to cut off cooperation with Palestinian banks could halt the supply of essential goods such as food and fuel to the Palestinian territories, the Palestinian Monetary Authority (PMA) said on Wednesday. Israeli Finance Minister Bezalel Smotrich on Tuesday had ordered the cancellation of a waiver on cooperation between Israeli and Palestinian banks, a move that puts the Palestinian banking system, trade and overall economy at risk. Israeli banks Hapoalim and Israel Discount Bank work with Palestinian banks. Some 53 billion shekels ($15.2 billion) were exchanged at Palestinian banks in 2023, official data show. Cancelling the waiver would require approval by Israel's security cabinet. No date for a vote has been set and it was not clear whether it would pass. The PMA said it was following developments and warned that such disruption posed a serious threat to Palestinian access to basic goods and services. It noted it has ongoing coordination with the political leadership and international community to safeguard correspondent banking relationships. 'These efforts are vital to ensuring the continuity of commercial transactions and the payment of essential imports and services, including food, electricity, water and fuel,' the PMA said. Smotrich said his decision came against the 'delegitimization campaign' by the Palestinian Authority against Israel globally. The waiver had allowed Israeli banks to process shekel payments for services and salaries tied to the Palestinian Authority, without the risk of being charged with money laundering and funding extremism. Without it, Palestinian banks would be cut off from the Israeli financial system. The PMA said depositors' funds within the Palestinian banking sector are secure and that the banking system remains integrated with the global financial network through a broad range of correspondent banks and continues to provide services to individuals and businesses domestically and internationally. Smotrich, under US pressure, had in late 2024 signed a waiver to extend cooperation between Israeli and Palestinian banks through November 2025. In the past, Smotrich sought to end the waiver but ultimately signed it due to pressure from the US and Prime Minister Benjamin Netanyahu. His latest decision came hours after the United Kingdom and four other nations imposed sanctions on him and another far-right minister, accusing them of inciting violence in the West Bank. The sanctions included a freeze on assets and travel bans. Israel's Foreign Minister Gideon Saar said the action by the five countries was 'outrageous.' ($1 = 3.4906 shekels)
Al Arabiya
3 days ago
- Business
- Al Arabiya
Israel's Smotrich cancels waiver allowing Israeli and Palestinian banks to work together
Israel cancelled a waiver on Tuesday t hat had allowed Israeli banks to work with Palestinian ones, threatening to paralyze Palestinian financial institutions, Israel's finance ministry said in a statement. 'Against the backdrop of the Palestinian Authority's delegitimization campaign against the State of Israel internationally, Finance Minister Bezalel Smotrich has instructed Accountant General CPA Yahli Rotenberg to cancel the indemnity provided to correspondent banks dealing with banks operating in Palestinian Authority territories,' the ministry said. Smotrich had threatened in May 2024 to cut the vital connection between Israel and Palestinian banks in the occupied West Bank in retaliation for the recognition of the State of Palestine by three European countries. The Palestinian financial and banking system is dependent on the regular renewal of the Israeli waiver. It protects Israeli banks from potential legal action relating to transactions with their Palestinian counterparts, for instance in relation to financing terror. In July, G7 countries urged Israel to 'take necessary action' to ensure the continuity of Palestinian financial systems. It came after US Treasury Secretary Janet Yellen warned that 'to cut Palestinian banks from Israeli counterparts would create a humanitarian crisis.' The overwhelming majority of exchanges in the West Bank are in shekels, Israel's national currency.
