Today: 29 May 2025
24 September 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

Curtains Rise on Oman’s First European Film Festival

Latest from -Top News

Saudi backs India’s strategic outreach

In a series of engagements, the Indian delegation met Saudi Arabia’s Minister of State Adel Al-Jubeir and other senior officials. A high-profile Indian all-party parliamentary delegation, led by BJP MP Baijayant Jay

Iran pressed over 3 missing Indians

The embassy stated that it is maintaining close contact with the families and keeping them regularly updated about the steps being taken….reports Asian Lite News The Indian government has urged Iranian authorities

EU-UAE FTA talks amid US tariff pressure

Talks will also explore ways to boost trade in strategic sectors, such as renewable energy, green hydrogen and critical raw materials….reports Asian Lite News The European Union (EU) and the United Arab

Islamabad-Ankara-Baku Axis Sharpens Against India

Both Turkey and Azerbaijan have openly expressed solidarity with Pakistan and backed Islamabad in its military standoff with India, this month….reports Asian Lite News The evolving alliance between Islamabad, Ankara, and Baku
Go toTop

Don't Miss

Biden to host Jordan King on July 19

King Abdullah II will be the first Arab leader to

UN chief renews call for calm on Israel-Lebanon border

The Blue Line is a border demarcation between Lebanon and