Israeli Banks Halt Shekel Cash Transfers from Palestinian Banks, Creating Financial Strain

Israeli banks are refusing shekel cash transfers from Palestinian banks in the occupied West Bank. This move could soon prevent Palestinians from accessing vital goods and services. Palestinian officials expressed concerns as it may hinder financial transfers between merchants. Escalating violence has worsened the situation, pushing the region towards a financial crisis.

Israeli banks have stopped accepting shekel cash transfers from Palestinian banks in the occupied West Bank, a move that could thwart Palestinians' access to essential goods and services, according to Palestinian officials.

Israel's finance minister Bezalel Smotrich, who extended a waiver in June for the cooperation between Israeli and Palestinian banks, did not provide immediate comments. The Palestinian Monetary Authority warned that banks in Palestine will soon be unable to finance trade operations with Israeli merchants, which are dependent on the transfer of shekel banknotes to Israeli banks.

This development could impede Palestinians from accessing vital goods and services, as they would find it challenging to pay for them through official banking channels. Additionally, rising violence in the West Bank since the conflict between Israel and Hamas last October has only exacerbated the region's financial instability.

(With inputs from agencies.)