St. petersburg: Palestinian Monetary Authority Governor Yahya Shunnar has urged the international community, including financial institutions and central banks, to take decisive action against Israeli policies impacting the Palestinian financial sector.
According to Palestine News and Information Agency - WAFA, Shunnar issued this call during a financial conference hosted by the Central Bank of Russia in St. Petersburg. The event was attended by notable figures such as Bank of Russia Governor Elvira Nabiullina, along with central bank governors, financial institution leaders, and economic experts globally.
During a panel discussion on the challenges faced by central banks amid evolving global economic conditions, Shunnar highlighted the severe difficulties confronting the Palestinian economy and financial system due to Israeli measures. He characterized these actions as a significant threat to critical sectors.
Shunnar pointed out that Palestinian banks are grappling with a liquidity crisis exacerbated by an accumulation of Israeli shekels. This situation has arisen because Israeli authorities have refused to accept the surplus under previously established agreements. The liquidity issue is hampering banks' capacities to fulfill customer needs and maintain efficient daily operations, thereby adversely affecting economic activities and supply chains.
He further cautioned that repeated threats to sever correspondent banking relationships between Palestinian and Israeli banks could destabilize financial systems and disrupt commercial activities.
Shunnar also criticized Israel's ongoing withholding of Palestinian clearance revenues, noting that this has intensified the Palestinian Authority's financial crisis, hindered the government's capacity to meet its obligations, and heightened economic pressures.
Despite these challenges, Shunnar emphasized that the Palestinian banking sector maintains high international standards in supervision, governance, and compliance. He cited positive assessments by the Middle East and North Africa Financial Action Task Force (MENAFATF) regarding anti-money laundering measures and regulatory oversight.
Additionally, Shunnar underscored Russia's potential role in addressing the challenges facing the Palestinian economy and financial sector. He advocated for closer dialogue with Moscow to elevate these issues on both regional and international platforms, thereby supporting efforts to mitigate their impact.