RAMALLAH, August 4, 2026 (WAFA) – Governor of the Palestine Monetary Authority (PMA) Yahya Shannar announced that the Israeli side has approved bringing forward the transfer of the fourth-quarter shipment of excess Israeli shekels accumulated in Palestinian banks, with implementation beginning immediately on Tuesday.
Shannar said the decision followed intensive interventions and communications led by the Palestinian leadership, including the Vice President of the State of Palestine, in coordination with international partners.
He explained that the decision allows for the immediate transfer of approximately 4.5 billion shekels to the Bank of Israel. He described the move as an important step in addressing the surplus shekel crisis facing the Palestinian banking sector and said it would help improve liquidity levels at banks and support their accounts with Israeli banks, strengthening their ability to continue providing banking services efficiently amid exceptional economic and financial conditions.
The PMA governor said the development would directly ease pressures resulting from the accumulation of excess shekels, improve banks’ ability to manage liquidity, support the needs of citizens and the private sector for banking services, and enhance financial market stability during the current period.
He added that the PMA, in coordination with banks and relevant authorities, immediately began taking the necessary technical and logistical steps to implement the transfer process as quickly as possible and ensure immediate benefit from the decision.
Shannar praised the efforts of the Palestinian leadership, particularly the Vice President of the State of Palestine, as well as the support provided by international partners, which he said contributed to reaching this outcome. He stressed the importance of continued joint efforts to address challenges facing the Palestinian banking sector.
At the same time, the PMA governor emphasized that while the measure is important, it represents an urgent response to current pressures and highlights the need to establish a sustainable mechanism to reduce reliance on the shekel in daily transactions and expand the use of electronic payment methods provided by the PMA and Palestinian banks.
K.T
