Shanar: The Palestinian economy cannot bear the continuation of correspondent banking relationships based on temporary decisions

Ramallah - Afaq News - The Governor of the Palestinian Monetary Authority, Yahya Shanar, warned of the ongoing risks facing the Palestinian economy due to the dependence of correspondent banking relationships with Israeli banks on temporary decisions and extensions, emphasizing that extending the relationship until the end of this year does not represent a sustainable solution to this vital issue.

This came during Shanar's meeting today, Tuesday, with the European Union representative to the State of Palestine, Andreas Fiedler, and his accompanying delegation, in the presence of Deputy Governor Muhammad Manasra and several directors of the Monetary Authority's departments, where the two sides discussed the implications of the restrictions imposed on banking relations and their reflections on the Palestinian economy.

Shanar confirmed that the continuation of correspondent banking relationships with Israeli banks is a fundamental necessity to ensure the flow of trade, payment movements, and supply chains, in addition to maintaining the continuity of banking and vital services provided to citizens, warning that keeping this file hostage to temporary decisions exacerbates uncertainty and exposes the economy to increasing risks.

The Governor of the Monetary Authority called on the European Union to play a more effective role and to use its political and economic tools to pressure for the guarantee of stable and sustainable banking relationships, especially in light of the extensive connections of Israeli banks to the international financial system and their investments and external banking relations.

Shanar stressed the need for the European Union and the international community to act to address the economic repercussions resulting from Israeli measures and to work towards finding a permanent solution to the banking relations file that protects the stability of the Palestinian financial sector and ensures the continuity of the economy.

In this context, he affirmed the commitment of the Palestinian banking sector to apply the highest international standards in the fields of combating money laundering and financing terrorism, and to continue developing its regulatory systems and banking practices in a way that enhances trust in the Palestinian financial sector and maintains its relationships with the international financial system.