24 Hrs
Source:
شبكة راية الإعلامية
Mas Institute: Ongoing Shekel Crisis in Palestinian Economy
The article addresses the crisis of the surplus of the shekel in the Palestinian economy. It explains that the accumulation of liquidity in the Israeli currency creates economic and structural challenges and results in direct and indirect losses for Palestinian banks. The report clarifies that sources of shekel inflow include Palestinian labor in Israel and settlements, purchases by Palestinians within Israel, and trade with Israel. This necessitates transferring between 25 and 30 billion shekels annually to Israel. However, restrictions on remitting these funds have led to their buildup. Government measures, such as developing electronic payment tools and promoting digital transformation, have shown efforts to mitigate the problem. Nonetheless, these solutions remain insufficient to address the flow of liquidity, especially given that Israel has ceased transferring funds since June 2025. The paper proposed strategies to raise remittance limits, expand the use of digital payments, and strengthen trade relations, aiming to avoid negative repercussions that could impact economic activity and the stability of the Palestinian banking sector.
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