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

UN Slams Pakistan Over Minority Attacks

The minorities in Pakistan – including Ahmadiyya Muslims, Christians, Hindus, and Shia Muslims – continue to be neglected and increasingly subjected to targetted state-backed persecution….reports Asian Lite News Alarmed by rising violence

Cambodia-Thailand Agree to Truce

The border violence has claimed at least 35 lives and left more than 200 injured, based on figures from Thai and Cambodian officials….reports Asian Lite News Cambodia and Thailand have agreed to

Baloch Activist Thanks India, Slams Pakistan Terror

Mir Yar Baloch also appreciated the extraordinary courage and professionalism of the Indian Armed Forces, the “responsible and patriotic role” of the Indian media…reports Asian Lite News Prominent Baloch human rights activist

UK Warns China Over Taiwan Moves

Healey’s comments come amid rising global concerns over Chinese military activity around Taiwan and the growing Western focus on the Indo-Pacific region. British Defence Secretary John Healey has said the UK is

US Sticks to August 1 Tariff Deadline

US Commerce Secretary Howard Lutnick ruled out any possibility of an extension…reports Asian Lite News The US administration on Sunday said the August 1 deadline for imposing reciprocal tariffs remains unchanged and
Go toTop

Don't Miss

Biden recasts US-China engagement over Taiwan, making it key third party

But President Joe Biden may have already altered the decades

US eases visa delays for Indians, vows more

The longest wait-time, typically for first-time visitors, is down from