Gaza Genocide29 July, 20263 min read
Palestinian Finance Minister Estephan Salameh Warns Israeli Banking Tie Cuts Threaten Basic Services
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Salameh warns severing Israeli banking ties would disrupt basic services. Ending banking ties could disrupt imports and essential services.
Banking rupture threat
Palestinian Finance Minister Estephan Salameh warned that Israeli threats to sever banking relations with Palestinians cross “all red lines,” saying such a move would prevent basic services and make life more difficult for Palestinian citizens. Speaking at a press conference in Ramallah, Salameh said the government has completed its fifteenth month without receiving Palestinian clearance revenues and is entering the sixteenth month amid continued withholding. He said the government will continue paying 50% of public employees’ salaries through the end of the year, while announcing a package of measures to address the financial and fuel crises.
Salameh also warned that Israeli steps to sever banking relations would affect access to water, electricity, and fuel, and he described the broader policy as part of a systematic effort aimed at destroying the Palestinian economy and preventing a viable Palestinian state. In the same briefing, WAFA said Salameh warned that the Israeli side does not want to deal with Palestinians and does not want to receive surplus shekels available in the Palestinian market, arguing the response is to gradually stop using cash and move toward electronic payments.
Fuel, salaries, and cash
Salameh told reporters that signs of improvement in the fuel crisis are expected to emerge next week, while the government will continue paying 50% of public employees’ salaries through the end of the year. He said securing that 50% requires around 650 million shekels per month, and he described the government’s remaining capacity as limited after meeting obligations. WAFA reported that Salameh said the government relies on four main sources to finance salary payments: borrowing, foreign aid, domestic revenues, and sound financial management.
In parallel, the Yaffa News Network quoted Salameh warning that if Israel moves to sever banking relations, it would lead to suspension of the flow of goods, fuel, and electricity to the Palestinian market. Yaffa News Network also quoted Salameh saying the shekel crisis and correspondent banking relations have become a “matter of life and death” for Palestinians, and argued the solution lies in gradually reducing reliance on the shekel and moving toward electronic payment methods.
Numbers, cards, and next steps
WAFA said Salameh described cash circulating in the Palestinian market as 53% in shekels, 33% in US dollars, and 12% in Jordanian dinars. He added that the Palestinian market has infrastructure for the transition, with around 1.8 million bank cards currently in circulation, and he said the Palestine Monetary Authority is monitoring the issue daily in coordination with the government and international partners. Salameh warned that if Israel continues obstructing the use of the shekel, the Palestinian side will move toward increasing reliance on other currencies, while banks take steps to expand electronic payments and adopt the Jordanian dinar as a legally recognized currency.
Yaffa News Network reported that Salameh said the Palestinian government is entering its 16th consecutive month without Israel transferring clearance revenues, worsening the financial crisis and affecting the government’s ability to provide basic services. In the same Yaffa account, Salameh said the international community’s support is “completely insufficient” to deal with growing economic and financial challenges, and he urged partners to see “the truth” about what Palestinians are enduring.