The Governor of the Monetary Authority Calls for Urgent International Action to Address the Challenges Facing the Palestinian Banking Sector

SadaNews: The Governor of the Monetary Authority, Yahya Shanar, called for urgent international action to alleviate the challenges faced by the Palestinian banking sector due to Israeli measures and restrictions, stressing that the continuation of these challenges negatively affects financial stability and the Palestinian economy.

This came during his meeting with the Acting Head of the Federal Republic of Germany's Mission to Palestine, Mr. Timo Gossmann, and the Deputy Head of Development Cooperation at the German Representation, Ms. Ruth Muller, in the presence of Deputy Governor Mr. Muhammad Munasra and several department directors, where the governor reviewed the main challenges facing the Palestinian banking system.

Shanar explained that the crisis of the accumulation of excess shekels in Palestinian banks, resulting from restrictions on cash transfers, remains one of the most significant challenges due to its direct impact on banks' ability to provide services to citizens and finance various economic and vital sectors.

He also emphasized the importance of maintaining correspondent banking relations, as they are a fundamental pillar for continuing trade flows, facilitating external payments, and ensuring the flow of goods and services, warning that any threat to these relations would have widespread repercussions on the economy and food security in Palestine.

The governor confirmed that the repercussions of these challenges extend to various components of the economy, including the private sector, trade movement, and economic activity, calling on the international community, particularly Germany, to intensify political efforts to help mitigate the impacts of Israeli measures and bolster the stability of the Palestinian banking sector, enabling it to play its role in safeguarding the national economy as the sole channel for empowering the private sector to import goods and materials necessary for the lives of thousands of families in the West Bank and Gaza Strip.

For his part, Acting Head of the German Mission, Timo Gossmann, affirmed his country’s interest in monitoring economic and financial developments in Palestine, expressing appreciation for the efforts made by the Monetary Authority to address current challenges and emphasizing the importance of continuing dialogue and cooperation between the two sides on issues of mutual interest.