Ramallah- Palestinian businessman Muhammad Halaqa, from the Hebron region (southern West Bank), estimates his dealings with a local bank for 20 years, with tens of millions of Israeli shekels (the dollar equals 3.5 shekels), but days ago he was surprised by the bank that the banks deal with with cash in the same currency on the pretext of the currency of the currency in the bank.
Halaqa tells Al -Jazeera Net that his company, who is concerned with importing paper tissues, must have large monthly obligations for the shekel and the dollar, and to cover these obligations, he must deposit either in the Jordanian dollar or dinar, and then sell them to the bank and buy the shekel electronically.
The businessman reveals a big difference when purchasing the currency from exchange companies compared to banks, which incur citizens and merchants alike great losses, the consumer is their final victim.
Real example
For example, Halaya says that the merchant who has a commitment to 100,000 shekels, for example, must buy the equivalent of dollar from exchange companies, and equal approximately 27.4 thousand dollars at a price of 3.65 shekels for the dollar. Then he deposits it in the bank, then it must transfer the dollar again to the shekel, but at the price of the bank, which is less than what it bought, and equals 3.5 shekels per dollar, meaning that it will get about 96 thousand shekels.
In this case – Halika explains – that he lost twice, the first when he bought the dollar from abroad, and the second when he sold it to the bank.
As another example, he said that he was depositing the shekel’s currency and buying the dollar from the bank at the official price, to transfer it abroad as the price of imported goods, but today he was forced to buy the dollar from outside the banks at a higher price to deposit and transfer it.
The Palestinian merchant considers the banks ’decision not to receive the shekel,” a fatal blow to merchants who make up about 70% of society, and economic infrastructure. “
He asks: “I am importing and I have 32 containers in the sea, and I have monthly obligations of 432 thousand dollars, and the currency in the market is the shekel, and you can imagine the size of the loss to switch the currency.”
He notes that traders will have to raise prices to compensate for these losses, and this will be at the expense of the citizen, holding the banks responsible for the current crisis, and called on the Monetary Authority to intervene.
To solve the shekel’s accumulation crisis, the banks are proposed to put more money in the market by facilitating the financing of a number of businessmen with the amounts stacked.
Oslo’s authority is entering the West Bank in a whirlpool of financial and living crises since the war began in order to occupy society in its livelihood.
After the continuous hydrocarbon crisis for now and the missing salary crisis, the shekel’s crisis is not accepted – the banks are not accepted for the shekels, although all commercial and government transactions are in the shekel.
Voltzide…
– Yaseenizeddeen (@yaseenizeddeen) June 21, 2025
Regeneration
Each few years floats the problem of the shekel’s accumulation in banks operating in the West Bank, to form with other factors more pressure on the exhausted and besieged Palestinian economy and the Palestinian citizen, amid official efforts to search solutions.
According to the data of the Palestinian Monetary Authority, which is the central bank, the problem is that banks are unable to charge the shekel’s surplus to Israeli banks, which leads to their accumulation in banks of banks and limits the implementation of daily commercial transactions with the Israeli side.
Although the Palestinian Monetary Authority issued instructions to banks to receive the shekel’s currency within certain determinants, and set the ceiling for 5,000 shekels for individuals, citizens complain of their lack of commitment.
According to the Director General of the Palestinian Banks Association, Bashar Yassin, the shekel’s accumulation is a political dimension, as Israel is represented by the Ministry of Finance And the central bank The Israelis about the reception of the shekel’s surplus for the second quarter in a row this year.
In his speech to Al -Jazeera Net, he indicated that Israel, 6 months ago, did not receive any shekel from banks operating in the West Bank, contrary to the agreements concluded with it, which stipulates that about 4.5 billion shekels fourth in a quarter (every 3 months), by virtue of that she is the owner of the currency and its source.
“We are now entering the third quarter, and the problem is increasing and worsening.”
He pointed to an official Palestinian move at the highest levels in Europe and America Wat aald Ali To demand pressure on Israel and solve the problem, it is likely that these communications will result in a solution soon to the problem.
What is the solution?
In turn, the economist, Muayyad Afana, told Al -Jazeera Net that the shekel’s accumulation cannot be seen in isolation from Israel’s detention of the clearing funds, which are Palestinian tax revenues, and its endeavors to break the relationship with Palestinian banks, such as pressure and extortion of the Palestinian Authority.
Afaneh explains that the shekel will accumulate a shadow over the Palestinian economy in general, likely to grow the black currency market and a decline in the value of the shekel locally soon.
He believes that solving the problem is the digital transformation and the seizure’s entry into the market, “but it takes time.”
With Afaneh, the banks have approximately 6.5 billion shekels in the treasury. “
He pointed out that the Paris Economic Protocol is between Palestine Liberation Organization And Israel for the year 1994, the ceiling was set at 12 billion shekels, which Israeli banks must receive from their Palestinian counterpart in the form of quarterly batches.
He adds that, according to a study of the International International Monetary Fund with the Israeli Central Bank and the Palestinian Monetary Authority, the ceiling was raised to 18 billion shekels, but it is actually more than twice this amount, and this was due to the growth of the Palestinian economy and the commercial movement, stressing the need to raise the ceiling.
Monetary Authority: We took measures to address the shekel’s accumulation crisis, among them:
– Agreement with the Union of Agricultural Chambers of Commerce and Private Sector to enhance financial inclusion.
Publishing points of sale and electronic payment services in all shops and companies.
– Reducing critical dealing because of this role in relieving … pic.twitter.com/uYZsTfKXvS
Quds News Network (@qudsn) June 22, 2025
Government endeavors
For weeks, she returned to the interaction of the Shekel’s accumulation issue at the official level, and several meetings were held with the private sector and the chambers of commerce to search for solutions to the problem, and it was a focus on digital transformation and electronic payment.
In parallel, the government continues its contacts with various international bodies to pressure Israel towards addressing the problem.
The Palestinian Monetary Authority also announced – in a statement – that it is in contact with the Israeli Central Bank and with all local and international bodies and institutions and shows the risks and implications of not allowing Palestinian banks to ship the available cash.
It also announced yesterday, Sunday, that it conducted a series of meetings with the government and representatives of the private sector, which resulted in an agreement to publish electronic payment services and sales points in all stores and companies, to reduce cash interaction, in a way that contributes to reducing the accumulation of the shekel and reducing the risk of theft and forgery.
It also instructed banks to cooperate with the economic sectors responsible for providing basic commodities in the local market, in addition to facilitating foreign trade financing operations, and the need to deal positively with the monetary deposits of individuals.
Currencies circulating in the Palestinian market, and the role of correspondence banks in completing commercial transactions pic.twitter.com/HoZJjcWAak
— PMA (@PMAuthority) June 21, 2025
3 currencies
There are major currencies that are allowed to be traded in law PalestineIt is the shekel, the dollar, the dinar, and the euro, but the shekels acquire the largest percentage of currencies in circulation, as it is the daily dealing currency and is used in the purchase and sale of goods and services, according to the text of the agreement Paris Economic signed in 1994.
Under the correspondence between Palestinian and Israeli banks, the shekel is shipped to pay the prices of the goods and services received and from the Israeli side.
The Monetary Authority appreciates the proportion of Palestinian exports to Israel About 85% of the total Palestinian exports, while the percentage of direct imports from the Israeli market is about 55% of the total imports, which include goods and basic services such as electricity, water, oil and food materials. All of them are carried out in the shekel with average annual banking operations between checks and transfers of about 50 billion shekels (14.42 billion dollars) annually.