RAMALLAH, Tuesday, February 26, 2019 (WAFA) – The electronic banking clearing system will go into effect in the Palestinian territories starting April, the Governor of the Palestinian Monetary Authority (PMA), Azzam al-Shawwa, said today.

He said the new system will allow banks to collect on checks within two working days in the first stage, which will go on for six months, to then be done within one working day, compared to three or more days of the current automated clearance system.

He explained that the move from automated clearing system to the electronic clearing system will speed up rotation of funds and liquidity in the domestic economy, which will leave a positive impact on the national economy, the banks and the public in general.

Shawwa said that even though the PMA has planned to launch the new system in the beginning of this year, the delay was for technical reasons.

He said that the six-month period for the two-day clearance will give the public enough time to get used to having the checks cleared in a shorter period so that they will not have to bear any consequences for bouncing checks.

Shawwa also said the Central Bank law is almost ready and as soon as it is ratified by the president the PMA will turn into a central bank.

M.K.