Sunday, October 21, 2007
Israeli National Bank to PA, "Your money's no good here"
According to Shraga Elam: "It says that the bank of Israel (the central bank) tries to prevent the Israeli banks from ceasing to do any New Shekel clearings transactions with the OPT (since 1967). The central bank asked a postponement of a month in order that the government will discuss the political and economical implications of this step.
The big Israeli banks, Hapoalim, Discount and Leumi decided to stop the clearing as of November 1, because of pressure through the authorities against money laundering that fights transfer of monies to "terror organizations".
It means that the 3 Israeli banks declared that they are going to stop dealing with the Palestinians of the West Bank. Considering that the NIS is almost an official currency this is a severe blow to the Palestinian economy. The banks will stop e.g. honoring cheques etc. This will make it more difficult for Palestinians to pay for orders in Israel. It is not clear, according to ynet if there was a conscious decision of the government. There are negotiations between Abu Mazen and Olmert on this issue."