MOSCOW, July 4, 2026 (WAFA) – Palestinian Monetary Authority Governor Yahya Shunnar on Saturday called on the international community, international financial institutions, and central banks to take urgent action and pressure Israel to halt measures targeting the Palestinian financial sector.
Shunnar made the appeal while participating in the financial conference of the Central Bank of Russia in St. Petersburg, attended by Bank of Russia Governor Elvira Nabiullina, central bank governors, financial institution leaders, and economic experts from around the world.
Speaking during a panel on the challenges facing central banks amid global economic changes, Shunnar said the Palestinian economy and financial system are facing unprecedented difficulties due to Israeli measures, which he described as a direct threat to key sectors.
He said Palestinian banks are experiencing a worsening liquidity crisis caused by the accumulation of excess Israeli shekels after Israeli authorities refused to accept the surplus under previously agreed mechanisms. According to Shunnar, the situation is limiting banks' ability to meet customer needs and conduct daily operations efficiently, affecting economic activity and supply chains.
Shunnar also warned of the consequences of repeated threats to terminate correspondent banking relations between Palestinian and Israeli banks, saying such a move would jeopardize financial stability and disrupt commercial activity.
He highlighted Israel's continued withholding of Palestinian clearance revenues, saying the measure has deepened the Palestinian Authority's financial crisis, reduced the government's ability to meet its obligations, and increased pressure on the Palestinian economy.
The governor said the Palestinian banking sector continues to meet high international standards of supervision, governance, and compliance, citing positive evaluations by the Middle East and North Africa Financial Action Task Force (MENAFATF) regarding anti-money laundering measures and regulatory oversight.
Shunnar also stressed the importance of Russia's role in addressing the challenges facing the Palestinian economy and financial sector, saying closer dialogue with Moscow could help elevate these issues at both the regional and international levels and support efforts to mitigate their impact.
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