Shanar: Expanding Banking and Trade Cooperation with Turkey as a Pillar to Support the Palestinian Economy

SadaNews - The discussions between the Governor of the Palestine Monetary Authority, Mr. Yahya Shanar, and the Governor of the Central Bank of Turkey, Dr. Fahit Karahan, focused on ways to develop financial and banking cooperation between Palestine and Turkey, along with several priority issues for the Palestinian banking sector, on the sidelines of the Baraka Summit for Islamic Economy in Istanbul.

Shanar emphasized the importance of Palestinian-Turkish relations in supporting economic and financial cooperation, pointing out the necessity of continuing to develop these relations in a manner that serves the financial and commercial sectors and contributes to enhancing the stability of the Palestinian economy.

He briefed his Turkish counterpart on the main issues facing the Palestinian banking sector, foremost among them the accumulation of shekels, the ongoing restrictions on clearance funds, and the challenges related to correspondent banking relations between Palestinian and Israeli banks, and the direct repercussions of this on the performance of the banking sector, trade movement, and the continuity of banking services, which necessitates serious international action to address these challenges and ensure the stability of the Palestinian financial sector.

The two sides discussed ways to enhance cooperation between the financial and banking institutions in both countries, affirming the significance of Palestinian-Turkish trade relations and their role in supporting economic activity, and the necessity of developing the financial and banking sector to facilitate trade and investment between the two countries and to improve banking services associated with trade exchange.

For his part, the Governor of the Central Bank of Turkey expressed interest in the topics raised, confirming the importance of continuing institutional dialogue and developing frameworks for cooperation that enhance financial integration and support stability in economic environments affected by challenges.

In a separate meeting, Shanar discussed with the Governor of Bank Negara Malaysia, Mr. Abdul Rashid Ghafur, the prospects of developing the institutional framework for Islamic financing and expanding its tools in supporting the real economy, in addition to cooperation in financial innovation, digital payment systems, and enhancing the efficiency of financial infrastructure.

The two sides also reviewed the Malaysian experience in Islamic financing as an advanced model linking financial stability to inclusive growth, and benefiting from best practices in the areas of regulation, governance, and developing financial products.