Israeli banks block shekel transfers from Palestinian banks

Israeli banks are blocking shekel cash transfers from Palestinian banks in the West Bank, potentially disrupting Palestinians’ access to essential goods and services, according to Palestinian officials.

Israel’s finance minister Bezalel Smotrich, who had previously extended a waiver allowing Israeli banks to work with Palestinian banks in the West Bank, did not immediately comment.

The Palestinian Monetary Authority warned, “In the next few days, banks in Palestine will be unable to finance trade operations between Palestinian and Israeli merchants, as their ability to make financial transfers is directly connected to shipping the accumulated shekel banknotes to their Israeli counterparts.” The Authority added that this disruption will hinder Palestinians from accessing necessary goods and services through official banking channels.

Violence in the West Bank has intensified since the Israeli aggression on Gaza erupted, and the region is edging towards a financial crisis.

Attribution: Reuters

Subediting: M. S. Salama