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PA to create independent currency and build central bank

The PA plans to introduce an independent currency, unfettering itself from the economic shackles brought on by the Paris accords in 1995

Saleh Naami , Tuesday 26 Apr 2011
Views: 1594
Views: 1594

The Palestinian Authority is planning to build a central bank and introduce a Palestinian currency soon, said Jihad Wazir head of the PA’s monetary authority.

This comes as part of the authority’s preparation to declare Palestine an independent state in September.

In a conference held in Najah University in Nablus, Wazir stated that the PA had been working on developing an independent central bank for around three years.

The monetary authority had set up four functional offices to date for that purpose, he added.

Wazir indicated that the independence of a Palestinian central bank would mean a “bank capable of introducing a strong Palestinian currency.”

The PA will support its right to an independent currency by pointing to the fact that Palestinians had their own currency before the occupation of Palestine and the establishment of the Israeli state, he said.

Palestinian banks currently deal in a number of currencies including the US dollar, the Jordanian dinar and most importantly the Israeli shekel, which is used in most selling and buying transactions.

There have been numerous calls by Palestinians to discard the Paris accords which the PA signed with Israel in 1995 as it places the Palestinian economy under the mercy of its Israeli occupier.

The accords gave Israel’s central bank the right to intervene in Palestinian affairs specifically in the banking sector and manipulate the flow of hard currency to and from the Palestinian territories.

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