Ramallah Ma’an – The Monetary Authority denied news circulating indicating that the banking system declared a state of emergency in the wake of Israeli threats to sever the banking relationship with Palestinian banks.
It confirmed in a statement that these publications are baseless, and that the term ‘state of emergency’ is not used in banking crises.
The Monetary Authority clarifies that Palestinian banks play the role of mediators in bilateral trade with the Israeli side, and that severing the correspondent banking relationship will have a negative impact on the Palestinian and Israeli economies as well as on trade relations.
The Monetary Authority works with the competent Palestinian authorities and many international parties to maintain the banking relationship to facilitate trade exchange procedures and payment of prices for goods and services, and to prevent a humanitarian crisis that may occur as a result of any unilateral action.
The Monetary Authority indicates that the Palestinian banking system
maintains correspondent banking relationships with a wide network of banks around the world that qualify it to continue providing services to citizens locally and globally, as banking relationships with the outside world will not be affected in all cases.
The Monetary Authority stressed that the banking system manages its risks efficiently and competently, and that it and the banks take precautionary and proactive measures to confront potential risks. The Monetary Authority calls on the esteemed media outlets to return to them before publishing misleading information about the sectors subject to its supervision and control, especially in these exceptional circumstances.
In this regard, the Monetary Authority noted that it periodically publishes all financial and banking indicators on the performance of the Palestinian banking sector, and all indicators indicate its strength and ability to deal with various crises in a way that denies rumors and allegations aimed at undermining confidence in the Palestinian
banking system.
Source: Maan News Agency