Israel to improve bank transactions for its Palestinian workers
The governor of the Palestinian Monetary Authority, Azzam al-Shawa, announced an agreement with the Bank of Israel on a new mechanism creating an Israeli government body to handle Palestinian bank transactions.
GAZA CITY, Gaza Strip — The Palestinian Monetary Authority (PMA) and Bank of Israel agreed on a new mechanism to facilitate Palestinian bank transactions with Israeli banks. PMA Gov. Azzam al-Shawa announced the news in a statement published by WAFA, the official Palestinian news agency, on Oct. 24.
Under this mechanism, an Israeli state-owned body would be established in order to serve as a substitute for the Israel Discount Bank and Bank Hapoalim in dealing with Palestinian banks.
In the absence of a Palestinian national currency, Palestinian economic processes depend mainly on the Israeli currency, the shekel. The US dollar and the Jordanian dinar are also used.
Since the Paris Protocol on Economic Relations signed between the Palestinian Authority (PA) and Israel in 1994, Israel is responsible for supplying Palestinian banks with banking services through Israel Discount Bank and Bank Hapoalim.
