The Palestine Monetary Authority (PMA), together with the Office of the United Nations Special Coordinator for the Middle East Peace Process (UNSCO), convened a high-level roundtable with more than 16 ambassadors and representatives of over 27 countries, alongside international financial and banking institutions, to address pressures on the Palestinian economy and financial sector. The discussions centred on the Israeli Shekel (ILS) repatriation and excess liquidity challenge, correspondent banking relationships between Palestinian and Israeli banks, and the continued withholding of Palestinian clearance revenues. Governor Yahya Shunnar emphasised the need to preserve financial stability during recovery and reconstruction, particularly in the Gaza Strip, including enabling the PMA to fully exercise its mandate, strengthening supervision, and implementing robust anti-money laundering and counter-terrorism financing (AML/CTF) frameworks. The Deputy Governor, Mohammad Manasrah, outlined recent developments including digital transformation and the expansion of digital payment systems in the West Bank and Gaza, as well as efforts to implement the Cashless Law, while highlighting operational and regulatory constraints linked to correspondent banking, ILS liquidity repatriation, and clearance revenues. The PMA’s Financial Follow-Up Unit described progress on national and sectoral risk assessments, development of a national AML/CTF strategy, and preparations for an upcoming mutual evaluation aligned with international standards. Participants discussed coordination mechanisms with international partners to define priority support areas for the coming period and to underpin the recovery plan, with exchanges underscoring the role of states in advocating for the release of clearance revenues and addressing excess ILS liquidity. UNSCO’s Hansjörg Strohmeyer highlighted that sustaining access to financial services and scaling up recovery and reconstruction in Gaza would require long-term support for correspondent banking arrangements and predictable financial and regulatory channels.
Palestine Monetary Authority 2026-01-26
Palestine Monetary Authority convenes UNSCO roundtable to mobilise international support on ILS repatriation and clearance revenues
The Palestine Monetary Authority and the UN Special Coordinator for the Middle East convened a roundtable with international representatives to address challenges in the Palestinian financial sector, focusing on Israeli Shekel liquidity, correspondent banking, and withheld clearance revenues. Discussions emphasized financial stability, digital transformation, and AML/CTF frameworks, with calls for international support to sustain financial services and recovery efforts in Gaza.