Bangkok:The Palestine Monetary Authority (PMA) Governor Yahya Shunnar engaged in discussions with British Foreign Secretary Ed Miliband about forming an international coalition to protect the Palestinian banking sector amid existing restrictions. This meeting took place during the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group in Thailand.
According to Palestine News and Information Agency – WAFA, Governor Shunnar outlined the initiative's goal to maintain Correspondent Banking Relations (CBRs) between Palestinian and Israeli banks. This is in line with the 1994 Paris Protocol on Economic Relations, aiming for a comprehensive review and lasting solutions to ensure these relations' continuity.
Shunnar emphasized the UK's role in garnering international support for the Palestinian banking sector. He highlighted the need for practical mechanisms over temporary measures to ensure the continuity of CBRs. He also stressed the importance of coordination with the Bank of England and the UK Treasury to protect banking channels and ease restrictions.
The Governor called for international cooperation to develop banking sector solutions, including leveraging development finance institutions to support CBRs. He noted that CBRs are crucial for transactions in Israeli shekels, necessary for importing essential goods. Shunnar warned that cutting these relations without alternatives could disrupt foreign trade and goods flow into Palestinian markets.
Additionally, Shunnar urged the Bank of Israel to adjust the return limit for excess shekel cash held by Palestinian banks, aligning with economic activities and market needs. He also highlighted the need to restore the Gaza Strip's banking sector to full capacity, supporting economic recovery and financial transactions related to relief efforts.
The discussion also touched on the withheld Palestinian clearance revenues, with Shunnar advocating for their release. He warned that withholding these revenues exacerbates the Palestinian government's financial crisis, impacting service provision and living conditions.
Finally, Shunnar stressed that international evaluations of the Palestinian banking sector's compliance with anti-money laundering and counter-terrorism standards should be based on technical assessments. He urged the UK to reaffirm its stance on the Palestinian Framework's compliance with international standards.