The Palestinian Authority has warned that the Palestinian economy could collapse if Israeli banks cut correspondent banking ties with Palestinian financial institutions.
Palestinian Monetary Authority Governor Yahya Shunnar warned on Thursday of the serious consequences of Israeli banks ending correspondent banking relationships.
Speaking at a high-level international meeting organised by the Palestinian Monetary Authority at its headquarters in Ramallah, attended by ambassadors, representatives of international financial and banking institutions, and international organisations, Shunnar said continued Israeli measures were undermining the Palestinian economy, threatening food security and risking the collapse of essential services.
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He called for urgent and coordinated international action before the situation reached “the point of no return”.
The meeting, titled “Breaking Point”, was organised to warn of the risk of a total economic collapse that could threaten regional stability.
Speakers included Jordan Central Bank Governor Adel Sharkas, Arab Monetary Fund Director General and Chairman Fahad Mohammed Al Turki, who joined by video link, International Monetary Fund Resident Representative for West Bank and Gaza Tobias Roy, and Chairman of the Association of Banks in Palestine Maher Al Masri. The session was also attended by a large number of ambassadors and representatives of international financial and banking institutions.
Shunnar urged the international community and global financial institutions to act immediately to preserve correspondent banking relations with Israeli banks, describing them as the only means of accessing goods and services through the global financial system.
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