Israeli banks refusing shekel cash deposits from West Bank, Palestinian officials claim

Israeli banks are refusing shekel cash transfers from Palestinian banks in the West Bank in a move that could soon prevent Palestinians from accessing vital goods and services, Palestinian Authority officials claim.

The office of Finance Minister Bezalel Smotrich, who in June extended a waiver that allows the country’s banks to cooperate with Palestinian banks in the West Bank, has no immediate comment.

“In the next few days, banks in Palestine will be unable to finance trade operations between Palestinian and Israeli merchants, as their ability to make financial transfers is directly connected to shipping the accumulated shekel banknotes to their Israeli counterparts,” the PA’s Monetary Authority says.

It adds this will prevent Palestinians from accessing vital goods and services as they will be unable to pay for them through official banking channels.