Doha: The European Commission: expressed its deep concern on Thursday regarding Israel's decision to revoke the exemption that allows transactions between Israeli and Palestinian banks, a move that could significantly impact Palestinian financial institutions.
According to Qatar News Agency, the EU has called on Israel to immediately reverse this decision. The exemption is crucial for the Palestinian financial and banking system, as it shields Israeli banks from potential legal actions arising from transactions with Palestinian banks.
The Palestinian Authority's dependency on the Israeli financial system is underscored by the fact that most commercial transactions in the occupied West Bank are conducted in Israeli shekels. This reliance is due to the absence of a central bank in the Palestinian territories, which prevents them from issuing their own currency.