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شبكة راية الإعلامية
Economist Discusses Israel Banking Suspension
Economist Dr. Thabet Abu Rughles warned of the serious consequences of halting banking relations between Palestinian and Israeli banks, considering that such a step could trigger an unprecedented economic crisis and cut off the "lifeline" for the Palestinian economy. He explained that the heavy reliance on the Israeli economic system—through trade, crossings, and transactions in the shekel—makes any disruption a direct threat to economic continuity, especially given the lack of effective alternatives, as current solutions are only temporary. He also emphasized that continuing the use of the shekel and Israel's intervention in the movement of crossings reinforce the necessity of maintaining relations with Israeli banks, particularly given the accumulation of shekels in Palestinian banks, which restricts the banking sector’s ability to circulate liquidity. Furthermore, he pointed out that the economic crisis requires a comprehensive political solution, as it is linked to previous economic agreements and the high volume of trade between the two sides—approximately 55 billion shekels annually. He noted that the dominance of the right-wing Israeli camp reduces the impact of economic pressures on Israeli policies. Dr. Abu Rughles warned that if the crisis persists, it will increase pressures on the public sector and the Palestinian economy. He mentioned that the 2026 budget relies on local revenues and external support, while dependence on clearance funds could be one potential solution, but it would not completely resolve the crisis.
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