Palestinians living under Israeli military occupation in the West Bank, East Jerusalem, and Gaza Strip use the Israeli currency, the New Israeli Shekel, for their daily business. However, as the peace negotiation efforts of Secretary John Kerry stumbled (many would say failed) in late April, Israel took many punitive measures to punish Palestinians for not accepting full political submission.
One such measure is that Israel informed the Palestinian side that it would no longer allow Palestinian banks to transport their surplus Israeli currency to the Israeli Central Bank, an act that is unheard of in the world of banking. Israel is refusing to serve its own currency. In effect, Israel is declaring war on the Palestinian economy, risking the collapse of the thriving Palestinian banking sector, and disrupting the flow of basic goods such as electricity, petroleum, and natural gas into Palestine.
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