The Governor of the Monetary Authority Discusses with a Group of Experts and Academics Ways to Address the Effects of 'Shekel Accumulation'

SadaNews - The Governor of the Monetary Authority, Mr. Yahya Shanar, discussed with a group of economists and financial technology experts the intervention mechanisms to address the effects resulting from the accumulation of the Shekel in the banking system, which contributes to enhancing financial stability and maintaining supply chains in the national economy, and meeting the needs and requirements of the Palestinian community.

This took place during a large meeting held at the headquarters of the Monetary Authority and via video conferencing technology, which included a selection of experts and was attended by Deputy Governor Mr. Muhammad Manasra and several directors from the Monetary Authority.

Governor Shanar confirmed that the Monetary Authority is working to keep Palestinian competencies informed of the developments and challenges facing the Palestinian banking sector, especially the Shekel accumulation crisis resulting from the Israeli restrictions imposed on transferring the cash surplus of Shekels to Israeli banks, and to listen to their suggestions and ideas and discuss the best solutions to address this crisis. He emphasized that the banking system has proven to be resilient, stable, and experienced in handling financial and economic shocks, and that customer deposits are safe despite current challenges.

The meeting also addressed the issue of correspondent banking relations with Israeli banks in light of the repeated threats to sever these relationships, which hinder the operations of Palestinian banks and their ability to pay for goods and services imported from Israel, thereby negatively affecting the supply of essential goods and services to the Palestinian market.

The governor clarified that the Monetary Authority has approved a number of interventions and instructions under its authority, which have contributed to controlling the active part of the Shekel accumulation crisis, and it is in constant contact with relevant local and international parties to reach fundamental solutions to the crisis.

The governor expressed his gratitude to various economic sectors for their quick response to the Monetary Authority's instructions aimed at enhancing and expanding electronic payment, particularly in the fuel sector, which serves the interests of all parties, especially the Palestinian citizen, and increasingly contributes to mitigating the effects of Shekel accumulation in the banking system.

Participants from academia and experts presented numerous practical proposals addressing how to deal with current challenges, especially the issue of Shekel accumulation. They praised the achievements of the Monetary Authority in expanding electronic payment within a short period, which serves the public interest, and commended its initiative to invite them to a brainstorming session on the crisis, its implications, and possible solutions.

At the end of the meeting, the governor reaffirmed that the stability of the financial system is a top priority for the Monetary Authority, and that it works in partnership with all parties to overcome current challenges and achieve financial and economic sustainability.