Palestine Monetary Authority seeks international protection for banking sector

Yahya Shanar, Governor of the Palestine Monetary Authority, is calling for a radical, internationally supervised solution to stabilize correspondent banking relationships with Israel. During meetings held on the sidelines of the International Monetary Fund and World Bank annual meetings in Bangkok, Shanar met with British Foreign Secretary David Lammy to discuss forming an international alliance to protect the Palestinian banking sector.

Shanar emphasized that these banking relationships facilitate approximately 50 billion shekels in annual transactions, covering essential imports such as food, medicine, and fuel. He warned that unilateral decisions or the reduction of legal coverage periods to just two weeks create extreme uncertainty and threaten the Palestinian economy.

The Governor urged for increased coordination with the Bank of England and the UK Treasury to develop practical mechanisms that provide clear guarantees for the continuity of these financial channels, rather than relying on non-binding temporary measures.