A spokesman for the Israeli Finance Minister said – today, Sunday – that the minister extended a grace period that allows cooperation between the Israeli banking system and Palestinian banks in the occupied West Bank, according to what Reuters reported.
The grace period – which was scheduled to expire at the end of this June – allows Israeli banks to accept payments in shekels for services and salaries linked to the Palestinian Authority.
The spokesman added that Finance Minister Bezalel Smotrich extended the exemption during a recent cabinet meeting.
US Treasury Secretary Janet Yellen said that it is important to maintain mutual banking relations between Israel and the Palestinians, so that the faltering economy in the West Bank and Gaza Strip continues to function and to help achieve security.
The Palestinian economy relies heavily on this banking relationship to conduct transactions in shekels.
Official data shows that about 53 billion shekels ($14 billion) were traded in Palestinian banks in 2023.
