Updated
Updated · Bloomberg · Jun 16
Israeli Bank to End West Bank Services in September, Threatening Palestinian Access to Shekels
Updated
Updated · Bloomberg · Jun 16

Israeli Bank to End West Bank Services in September, Threatening Palestinian Access to Shekels

3 articles · Updated · Bloomberg · Jun 16

Summary

  • September is the planned cutoff for one of only two Israeli banks that provide Palestinians with access to key financial services, a move Palestinian officials say will deepen pressure on the West Bank economy.
  • Palestinian banks depend on Israeli correspondent banks to clear transactions because they have no direct access to Israeli financial institutions, making the departing bank a critical link in everyday payments.
  • The risk is amplified by the West Bank’s reliance on Israel and on the shekel as its main currency, leaving businesses and households exposed if clearing and other banking access tighten further.

Insights

What happens to the West Bank's economy when its last financial lifeline to the world is severed this September?
Is the 'economic strangulation' of Palestine a calculated Israeli policy or an unintended consequence of the ongoing regional war?