PMA mobilizes international support to address the IL repatriation crisis and release clearance revenues

With the participation of ambassadors and international partners

The Palestine Monetary Authority (PMA), in cooperation with the Office of the United Nations Special Coordinator for the Middle East Peace Process (UNSCO), convened a high-level roundtable discussion with the participation of more than 16 ambassadors and representatives of over 27 countries, in addition to representatives of several international financial and banking institutions.

The meeting was chaired by H.E. the PMA Governor, Mr. Yahya Shunnar, and attended by the Special Adviser to the Deputy United Nations Special Coordinator for the Middle East Peace Process, Mr. Hansjörg Strohmeyer. The meeting aimed to shed light on the critical issues affecting the Palestinian economy and financial sector, as well as the challenges hindering economic growth capable of generating employment opportunities and advancing sustainable development. Foremost among these challenges are the Israeli Shekel (ILS) repatriation crisis, correspondent banking relationships between Palestinian and Israeli banks, and the continued withholding of Palestinian clearance revenues.

Participants also discussed coordination mechanisms with international partners to identify priority areas of support in the coming period, the recovery plan in light of the current political, economic, and humanitarian context, and the capacities required to ensure the continued delivery of financial and banking services in both the West Bank and the Gaza Strip.

In his remarks, Governor Shunnar affirmed that the Palestinian financial sector has faced exceptional challenges in recent periods; nevertheless, it has continued to operate efficiently and has demonstrated a high level of resilience, strength, and stability. He emphasized the PMA’s firm commitment to safeguarding the soundness of the banking system and ensuring the continuity of financial services under all circumstances.

The Governor stressed that the next phase—particularly in the context of recovery and reconstruction efforts in the Gaza Strip—requires preserving financial stability by enabling the PMA to fully exercise its mandate, strengthening effective supervision, and implementing robust anti-money laundering and counter-terrorism financing frameworks. This, he noted, is essential to ensure that reconstruction efforts contribute to reinforcing the unity and integrity of the Palestinian financial system.

Governor Shunnar further underlined that ongoing coordination with international organizations and partners constitutes a fundamental pillar in safeguarding the stability of the Palestinian financial system and enhancing its resilience amid prevailing challenges. He stressed that mobilizing international support to address the ILS repatriation crisis and to release withheld clearance revenues is a key prerequisite for economic recovery and for enabling the Palestinian banking sector to play its full role in supporting recovery and growth.

For his part, Mr. Hansjörg Strohmeyer stated: “Thanks to the leadership of the PMA, access to financial services for Palestinians in Gaza has enabled the reopening of markets, the provision of services, and the purchase of basic necessities. Without international support to extend correspondent banking arrangements over the long term and to restore predictable financial and regulatory channels, scaling up recovery and reconstruction efforts in Gaza will become extremely difficult.”

In turn, the Deputy Governor of the PMA, Mr. Mohammad Manasrah, presented an overview of the current state of the Palestinian financial sector in light of recent developments, highlighting key achievements—particularly in digital transformation and the expansion of digital payment systems in both the West Bank and the Gaza Strip. He also outlined ongoing efforts to implement the Cashless Law, which contributes to strengthening financial inclusion and financial stability.

Mr. Manasrah further pointed to several operational and regulatory challenges facing the sector, foremost among them correspondent banking relationships, the repatriation of excess ILS liquidity, and the continued withholding of clearance revenues, as well as the implications of these challenges for the sustainability of the economy and the banking sector.

The Director of the Financial Follow-Up Unit, Dr. Firas Murar, presented ongoing efforts to strengthen the anti-money laundering and counter-terrorism financing framework. He highlighted progress in conducting national and sectoral risk assessments and in developing the relevant national strategy, in addition to preparations for the upcoming mutual evaluation process in line with international standards. These efforts aim to enhance the integrity of the Palestinian financial system and reinforce the confidence of international partners.

The roundtable discussion featured in-depth exchanges with ambassadors and international partners, focusing on coordination mechanisms and priority areas of support to strengthen the resilience and sustainability of the financial sector and the Palestinian economy. Discussions underscored the important role of states in supporting the sector to overcome existing obstacles, most notably by advocating for the release of clearance revenues and addressing the excess ILS liquidity crisis, thereby helping to ensure the stability of the economy and the Palestinian banking system and the continued delivery of financial services.