Dailyreport
Following threats by the far-right finance minister to cut off the connection during the Gaza conflict, the United States on Monday applauded Israel’s one-year extension of a lifeline to Palestinian banks.US supports Israel’s banking lifeline for Palestinians
In order to prevent the relatively stable West Bank from experiencing economic chaos, the United States had pressured Israel to keep the waiver that permits Israeli banks to collaborate with Palestinian ones.
In a joint statement, the State and Treasury Departments expressed their approval of the decision made by Israel’s security cabinet on Thursday.
Correspondent banking is a crucial component of the West Bank’s economic stability, which is necessary for both Israeli and Palestinian security, the statement stated.
“The United States is grateful for the continued dialogue on this issue with the Government of Israel and the Palestine Monetary Authority
In response to three European nations’ acceptance of a Palestinian state, far-right Finance Minister Bezalel Smotrich, who resides in a West Bank settlement and supports the complete annexation of the region that Israel has controlled since 1967, had already threatened to revoke the waiver.
When Israel only allowed a 30-day extension in October, US Treasury Secretary Janet Yellen expressed dismay and warned that shutting off Palestinian banks “would create a humanitarian crisis.”
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