The PMA Rallies the International Community to Act Before the Breaking Point: The Severance of Correspondent Banking Relationships Threatens the Economy and Life

RAMALLAH, Palestine, July 24, 2026 /CNW/ -- The PMA Governor, Mr. Yahya Shunnar, warned during a high-level meeting convened by the Palestinian Monetary Authority, with the participation of several ambassadors and representatives of international financial institutions, of the grave consequences of the severance of correspondent banking relationships (CBR). He stressed that the continuation of the Israeli measures is driving the Palestinian economy toward collapse, threatening food security and the provision of essential services.

First from the right: H.E. Mr. Maher Al-Masri, Chairman of the Association of Banks in Palestine Next to him: H.E. Governor Yahya Shunnar, Governor of the Palestine Monetary Authority Next to him: Mr. Tobias Roy, Resident Representative for the West Bank and Gaza at the IMF Next to him: Mr. Hansjoerg Strohmeyer, Senior Advisor, Office of UNSCO

The PMA convened the session under the title "The Breaking Point: Sounding the Alarm Before the Collapse." Featuring remarks by the Governor of the Central Bank of Jordan, Dr. Adel Al Sharkas; the Director General and Chairman of the Arab Monetary Fund, Dr. Fahad Al Turki, via videoconference; the IMF's Resident Representative, Mr. Tobias Roy; the Senior Adviser UNSCO, Mr. Hansjoerg Strohmeyer; and the Chairman of the Association of Banks in Palestine, H.E. Mr. Maher Al-Masri.

Governor Shunnar urged the international community to act immediately to preserve CBRs -- Palestine's only gateway to goods and services worldwide under the Paris Economic Protocol -- and to secure reliable, sustainable arrangements ensuring the uninterrupted flow of trade with Israel and the wider world.

Any disruption or termination of these relationships, he warned, would reach far beyond the financial sector and could rapidly escalate into an economic and humanitarian crisis. Broken supply chains could trigger shortages of fuel, energy, and essential food commodities, alongside rising prices, unemployment, and poverty -- all amid a worsening fiscal crisis driven by Israel's continued withholding of clearance revenues, which further limits the Palestinian government's ability to meet its obligations and deliver essential services.

Shunnar noted that 90% of Palestinian exports go to Israel, while 100% of imports originate from or pass through it, some 60% directly. Israeli correspondent banks processed roughly NIS 51 billion in transactions during 2025, underscoring how critical these channels are to sustaining economic activity.

He added that nearly NIS 18 billion (about USD 6 billion) sits idle in bank vaults, sharply constraining the banking sector.

Participants acknowledged that the window for effective action is narrowing rapidly, and that averting this scenario requires urgent, coordinated intervention to secure stable, sustainable arrangements that keep the Palestinian banking sector connected to the global financial system.

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SOURCE PMA