Financial Tensions: Israeli-Palestinian Banking Cooperation at Risk
The Israeli decision to potentially end cooperation with Palestinian banks could disrupt essential goods supply to Palestinian territories, warned the Palestinian Monetary Authority (PMA). Israeli Finance Minister Bezalel Smotrich aims to cancel the waiver facilitating Israeli-Palestinian banking relations, risking the Palestinian economy and trade. International coordination continues to mitigate disruption.
In a significant development, Israel's move to terminate banking cooperation with Palestinian institutions has sparked concerns over the potential economic fallout for Palestinian territories. The Palestinian Monetary Authority (PMA) warned that such a decision could severely disrupt the flow of essential goods and services, including food and fuel.
On Tuesday, Israeli Finance Minister Bezalel Smotrich ordered the withdrawal of a waiver allowing Israeli-Palestinian bank collaboration, thereby endangering trade and financial exchanges valued at approximately $15.2 billion in 2023. This move could incapacitate Palestinian banks by severing their ties with Israeli financial networks.
The PMA highlighted its efforts to maintain coordination with political leaders and the international community to protect banking relationships. These measures are crucial in ensuring continual access to goods like electricity and water. Meanwhile, Smotrich's action follows global criticism and international sanctions against him, raising further tensions in Israeli-Palestinian relations.
(With inputs from agencies.)
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