Smotrich move to end cooperation with Palestinian banks could halt food and fuel supply, warn Palestinians

An Israeli move to cut off cooperation with Palestinian banks could halt the supply of essential goods such as food and fuel to the Palestinian territories, the Palestinian Monetary Authority (PMA) says.

This follows Finance Minister Bezalel Smotrich’s order yesterday to cancel a waiver on cooperation between Israeli and Palestinian banks, a move that puts the Palestinian banking system, trade and overall economy at risk. Israeli banks Hapoalim and Israel Discount Bank work with Palestinian banks.

Canceling the waiver would require approval by Israel’s security cabinet. No date for a vote has been set and it is not clear whether it would pass.

The PMA says it is following developments and warns that such disruption poses a serious threat to Palestinian access to basic goods and services. It notes it has ongoing coordination with the political leadership and international community to safeguard correspondent banking relationships.

“These efforts are vital to ensuring the continuity of commercial transactions and the payment of essential imports and services, including food, electricity, water and fuel,” the PMA says.