Governor of the Palestinian Monetary Authority: The banking sector enjoys strong indicators and we will hold consultations on the law to reduce cash usage before its approval

SadaNews - The Governor of the Palestinian Monetary Authority, Yahya Shanar, briefed several journalists on the latest developments related to the Palestinian banking sector, the draft law to reduce cash usage, and the efforts being made to enhance financial stability and develop the banking system.

The governor emphasized that the banking sector enjoys strong indicators that reflect its resilience and ability to withstand challenges, pointing out that the Monetary Authority is monitoring sensitive files, most notably the correspondent banking relationships with Israeli banks and the surplus shekel crisis, along with the Monetary Authority's presence to address these issues.

The governor also reviewed the features of the draft law to reduce cash usage, explaining that it constitutes a necessary step, especially in light of the current conditions facing the Palestinian financial and economic sector, including the surplus shekel crisis and the threat of severing correspondent banking relationships with Israeli banks. He indicated that the Monetary Authority will conduct extensive consultations with various sectors before the law is approved in its final form.

The governor addressed the efforts made to ensure the continuity of banking services in the Gaza Strip, pointing out the role of banks in continuing to provide services to citizens and supporting reconstruction efforts and enhancing financial and economic stability in the sector. Additionally, the Monetary Authority launched a Financial Relief Fund initiative aimed at supporting families and individuals affected by the war, and alleviating their financial burdens by covering part of the debts or fully exempting them through a transparent mechanism to ensure that support reaches those who deserve it.