September 24, 2024
1 min read

US calls on Israel to keep banking ties with Palestine

Smoke rises from the vicinity of the Hamad Towers area northwest of the southern Gaza Strip city of Khan Younis, on Aug. 16, 2024. People in the Gaza Strip remain trapped in an endless nightmare of death and destruction, as new evacuation orders have been issued by Israeli authorities, the UN agency for Palestine refugees said on Friday.(IANS/Xinhua)

The current banking correspondence authorization is set to expire on October 31, posing risks to nearly $10 billion in import and export transactions….reports Asian Lite News

U.S. Deputy Treasury Secretary Wally Adeyemo has urged Israel to maintain its banking relationships with Palestinian banks for at least another year to prevent an economic crisis in the West Bank, emphasizing that Israel’s security is at stake. Adeyemo conveyed this message during a meeting with Bank of Israel Governor Amir Yaron in New York, coinciding with the United Nations General Assembly. He also met separately with Jordan’s King Abdullah.

The Treasury Department highlighted that Adeyemo expressed concerns over threats from some Israeli officials, including Finance Minister Bezalel Smotrich, to sever correspondent banking ties with Palestinian banks. This relationship is crucial for the Palestinian Authority’s stability, which, if compromised, could negatively impact Israel’s own security.

The current banking correspondence authorization is set to expire on October 31, posing risks to nearly $10 billion in import and export transactions. Adeyemo warned that cutting off these banking ties could push more Palestinian financial activities into unregulated sectors, escalating regional instability.

The World Bank recently indicated that the Palestinian territories are nearing an economic collapse, with Gaza’s GDP plummeting 86% in the first quarter of 2024, and the Palestinian Authority facing a $1.86 billion financing gap for the year. Although Smotrich extended a waiver for banking cooperation for just four months, U.S. officials have remained non-committal about potential repercussions if Israel does not extend this waiver further, leaving open the possibility of sanctions for non-compliance.

ALSO READ: Israel’s Lebanon bombardment tests US influence

Previous Story

Israel’s Lebanon bombardment tests US influence

Next Story

Dissanayake Vows Truth on 2019 Easter Attacks

Latest from -Top News

TIES WITH CHINA: Is Bangladesh Going Lanka Way?

Plans for nine Special Economic Zones, including Chinese-developed sites in Chattogram and Chandpur, promise jobs but risk creating enclaves where Beijing’s economic priorities overshadow Bangladesh’s….reports Asian Lite News On a humid March

Khaleda Zia’s Son Return Looms as Yunus Faces Heat

The core question remains whether Rahman can provide leadership in politically turbulent times in Bangladesh….reports Asian Lite News Speculation is mounting in Bangladesh over the possible return of Tarique Rahman, son of

India Eyes Top 5 Spot in Global Entertainment

With focused investments, policy support, and infrastructural upgrades, India is on track to position itself as one of the top five live entertainment destinations globally by 2030…reports Asian Lite News Fueled by
Go toTop

Don't Miss

Blinken set to testify in Congress on Afghanistan 

This decision comes after months of tension between the committee,

US nod for $100mn arms sale to bolster Taiwan defence

The Defense Security Cooperation Agency said it has delivered the