Yellen Expresses Concern Over Israeli Threat to Palestinian Banking Ties
U.S. Treasury Secretary Janet Yellen voiced her concern about Israel's potential move to cut off Palestinian banks from their Israeli counterparts. This action could severely impact the Palestinian economy by halting critical financial operations. Yellen emphasized the need for increased humanitarian aid and economic stability in the West Bank and Gaza.
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U.S. Treasury Secretary Janet Yellen said on Thursday she was concerned by a threat from Israel to cut off Palestinian banks from their Israeli correspondent banks, a move that would close a critical lifeline for the Palestinian economy. Yellen said in prepared remarks ahead of a G7 finance ministers meeting in Italy on Thursday that the U.S. and its partners "need to do everything possible to increase humanitarian assistance to Palestinians in Gaza, to curtail violence in the West Bank, and to stabilize the West Bank's economy."
Israel's Finance Minister Belazel Smotrich has indicated that Israel may not renew a waiver that expires on July 1 that allows Israeli banks to process shekel payments for services, and salaries tied to the Palestinian Authority. Yellen said it was important to keep open the Israeli-Palestinian correspondent banking relationships to allow battered economies in the West Bank and Gaza to function and help ensure security.
"These banking channels are critical for processing transactions that enable almost $8 billion a year in imports from Israel, including electricity, water, fuel, and food, as well as facilitating almost $2 billion a year in exports on which Palestinian livelihoods depend," Yellen said. She added that Israel's withholding of revenues collected on behalf of the Palestinian authority also threatens the West Bank's economic stability.
"My team and I have also engaged directly with the Israeli government to urge action that would bolster the Palestinian economy and, I believe, Israel's own security," Yellen said. Financial tensions between Israel and the U.S. have risen over U.S. sanctions imposed on Israeli settlers in the West Bank.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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