The Governor of the Monetary Authority discusses financial cooperation and challenges in the banking sector with the Head of the EU Mission

SadaNews - On Wednesday, the Governor of the Monetary Authority, Mr. Yahya Shanar, met with the Head of the EU Mission in Jerusalem, Alexander Stutzmann, and the Head of Cooperation at the Mission, Mr. Ibrahim Al-Afiya, in the presence of Deputy Governor Mr. Mohammed Manasra and a number of officials from both sides.

During the meeting, both sides discussed ways to enhance cooperation between the Monetary Authority and the European Union in achieving financial stability, promoting economic growth, developing the institutional and technical capabilities of the Monetary Authority, and improving the efficiency of the regulatory framework in line with the best European and international standards.

The meeting also discussed the European Investment Bank (EIB) loans aimed at financing the private sector, their role in stimulating economic growth, and enhancing the ability of Palestinian institutions to face current financial and economic challenges.

The discussion addressed the current liquidity surplus crisis in shekels within the Palestinian banking sector, resulting from the Israeli restrictions imposed on currency shipment operations. Governor Shanar reviewed the measures the Monetary Authority has taken to mitigate the repercussions of this crisis by developing electronic payment systems and expanding their use in the Palestinian market, reducing reliance on cash, in addition to continuing coordination with international partners to find sustainable solutions.

The meeting also touched on developments in the correspondent banking relationships of Palestinian banks with Israeli banks, amid recurrent Israeli threats to sever these relations, and the implications of this on the stability of the banking sector and the Palestinian economy.

Both sides reviewed the latest developments related to the assessment of the State of Palestine by the Middle East and North Africa Financial Action Task Force (MENA-FATF), and the efforts made by the Monetary Authority to enhance compliance with international standards in combating money laundering and financing terrorism, which contributes to strengthening the credibility of the Palestinian financial system regionally and internationally.