The occupied West Bank’s Palestinian banks are permitted to work with Israel’s banking system thanks to a dispensation granted by the minister of finance, according to a statement from the ministry on Sunday.
Payments in shekels for services and salaries related to the Palestinian Authority can be made through Israeli banks thanks to the waiver, which was set to expire at the end of June. There would have been a negative impact on the Palestinian economy.
According to a representative for the minister of finance, Bezalel Smotrich, the waiver was extended during a recent cabinet meeting.
In order to support security and enable the West Bank’s and Gaza Strip’s shattered economy to recover, US Treasury Secretary Janet Yellen has stated that it is critical to maintain the Israeli-
Palestinian correspondent banking partnership.
Using this relationship to handle transactions in Israeli shekels is crucial to the Palestinian economy.
The official statistics indicates that in 2023, approximately $14 billion or 53 billion shekels were exchanged in Palestinian banks.
