AMMAN: The Palestinian government has decided to begin reducing dependency on Israeli currency. Prime Minister Rami Hamdallah’s government decided on Feb. 6 to establish a committee to study “ways to shift from the use of the Israeli shekel to other currencies as well as studying the issuance of a national currency.”
Palestinians have been trying to find ways to wean themselves away from total dependency on Israel’s economy for a long time. Scrapping the Israeli currency, which is used throughout the occupied territories, has long been a demand of non-violent Palestinian activists.
Alex Awad, author of “Palestinian Memories: The Story of a Palestinian Mother and Her People,” explained the thinking behind the demand to shift away from using shekels as the primary currency for Palestinians.
“Why do we accept bills that have images of Israeli leaders on them? Why, with all of the evil measures against us, making our lives miserable, do we continue to use the currency of the very government that oppresses us? When are we going to end our addiction to their rules?” he said.
But Palestinian economists warn that the move could be disastrous for the local economy.
A retired senior monetary official told Arab News that until Palestinians are truly free and independent, there are no easy solutions to the currency issue. “When you tamper with currency you are risking a major economic problem for people,” he said.
The source, who asked not to be identified, noted that many Palestinians work in Israel. And, he added, the Paris agreement that regulates the Palestinian government’s tax and customs revenue specifies that Israeli shekels must be used in all economic dealings with Israel.
While it is easy to make some changes in the use of other currencies such as the US dollar or the Jordanian dinar, it is impossible to totally abandon the Israeli currency, the source said.
Samir Abdullah, a senior researcher at the Economic Policy Research Institute (EPRI) in Ramallah, told Arab News that it is possible to lessen dependence on the Israeli currency but that doing so would only affect a small portion of overall revenue.
“The biggest problem (is) the 7 billion shekels ($2 billion) in tax and custom revenues that come through Israel, which constitutes about 70 percent of overall revenue for the Palestinian government.”
Majed Arouri, executive director of the Civil Commission for the Independence of the Judiciary and Rule of Law, told Arab News that the Palestinian government’s decision was unwise and hasty.
“The Israeli government has been working on withdrawing the Jordanian dinar and US dollar from the Palestinian economy and has limited the availability of dinars,” Arouri said.
“The only dollar bill available in Palestine these days is the 100-dollar bill, which makes it difficult to conduct small-business dealings,” he added. Awad told Arab News that he sees the government’s decision as a small step toward Palestinian economic independence.
“This is a small act, but it is something everyone can do and it allows people to feel that they are not helping the occupiers,” he said.
Awad added that until Palestinians have their own currency, it is important to decrease their dependency on Israeli money.
“A large percentage of the currency coming to Palestine is in dollars, euros or Jordanian dinars,” he said. “Why are people so quick to change it into Israeli shekels?”
One possible solution to the dilemma that is being discussed by economists and activists is electronic banking and financial transfers.
A strong banking system and a tech-savvy population in Palestine would certainly mean that currencies other than the Israeli shekel could easily be used more often.
The EPRI’s told Arab News that one way to help lessen dependence on the shekel is to use credit cards.
“If we increase the use of credit cards, and at the same time work on a major expansion of points of sale that use these cards, we can use different currencies from the Israeli shekel,” he said.
Totally divorcing Palestinians from dependence on the Israeli economy and currency will be difficult, and the independent path that is being sought requires intense evaluation. But one thing is certain: The role of currency in a future Palestinian state is crucial.
Palestine may replace Israeli currency to reduce dependency
Palestine may replace Israeli currency to reduce dependency
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Tens of thousands of Palestinians flee West Bank refugee camps
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- The camps, built for descendants of Palestinian refugees who fled or were driven from their homes in the 1948 war around the creation of the state of Israel, have long been major centers for armed militant groups
JERUSALEM: Tens of thousands of Palestinians living in refugee camps in the occupied West Bank have left their homes as a weeks-long Israeli offensive has demolished houses and torn up vital infrastructure in the heavily built up townships, Palestinian authorities said.
Israeli forces began their operation in the refugee camp in the northern West Bank city of Jenin on Jan. 21, deploying hundreds of troops and bulldozers that demolished houses and dug up roads, driving almost all of the camp’s residents out.
“We don’t know what’s going on in the camp but there is continuous demolition and roads being dug up,” said Mohammed Al-Sabbagh, head of the Jenin camp services committee.
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The operation, which Israel says is aimed at thwarting Iranian-backed militant groups in the West Bank, has since been extended to other camps, notably the Tulkarm refugee camp and the nearby Nur Shams camp, both of which have also been devastated. The camps, built for descendants of Palestinian refugees who fled or were driven from their homes in the 1948 war around the creation of the state of Israel, have long been major centers for armed militant groups. They have been raided repeatedly by the Israeli military but the current operation, which began as a ceasefire was agreed in Gaza, has been on an unusually large scale. According to figures from the Palestinian Authority, around 17,000 people have now left Jenin refugee camp, leaving the site almost completely deserted, while in Nur Shams 6,000 people, or about two thirds of the total, have left, with another 10,000 leaving from Tulkarm camp.
“The ones who are left are trapped,” said Nihad Al-Shawish, head of the Nur Shams camp services committee. “The Civil Defense, the Red Crescent and the Palestinian security forces brought them some food yesterday but the army is still bulldozing and destroying the camp.” The Israeli raids have demolished dozens of houses and torn up large stretches of roadway as well as cutting off water and power, but the military has denied forcing residents to leave their homes.
“People obviously have the possibility to move or go where they want, if they will. But if they don’t, they’re allowed to stay,” Lt. Col. Nadav Shoshani told reporters.
The operation began as Israel moved to banish the main UN Palestinian relief organization UNRWA from its headquarters in East Jerusalem and cut it off from any contact with Israeli officials.
The ban, which took effect at the end of January, has hit UNRWA’s work in the West Bank and Gaza, where it provides aid for millions of Palestinians in the refugee camps.
Israel has accused UNRWA of cooperating with Hamas and said some UNRWA workers even took part in the Hamas-led attack on communities in southern Israel on Oct. 7, 2023 that set off the 15-month war in Gaza.
Tens of thousands of Palestinians flee West Bank refugee camps
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- The camps, built for descendants of Palestinian refugees who fled or were driven from their homes in the 1948 war around the creation of the state of Israel, have long been major centers for armed militant groups
JERUSALEM: Tens of thousands of Palestinians living in refugee camps in the occupied West Bank have left their homes as a weeks-long Israeli offensive has demolished houses and torn up vital infrastructure in the heavily built up townships, Palestinian authorities said.
Israeli forces began their operation in the refugee camp in the northern West Bank city of Jenin on Jan. 21, deploying hundreds of troops and bulldozers that demolished houses and dug up roads, driving almost all of the camp’s residents out.
“We don’t know what’s going on in the camp but there is continuous demolition and roads being dug up,” said Mohammed Al-Sabbagh, head of the Jenin camp services committee.
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The operation, which Israel says is aimed at thwarting Iranian-backed militant groups in the West Bank, has since been extended to other camps, notably the Tulkarm refugee camp and the nearby Nur Shams camp, both of which have also been devastated. The camps, built for descendants of Palestinian refugees who fled or were driven from their homes in the 1948 war around the creation of the state of Israel, have long been major centers for armed militant groups. They have been raided repeatedly by the Israeli military but the current operation, which began as a ceasefire was agreed in Gaza, has been on an unusually large scale. According to figures from the Palestinian Authority, around 17,000 people have now left Jenin refugee camp, leaving the site almost completely deserted, while in Nur Shams 6,000 people, or about two thirds of the total, have left, with another 10,000 leaving from Tulkarm camp.
“The ones who are left are trapped,” said Nihad Al-Shawish, head of the Nur Shams camp services committee. “The Civil Defense, the Red Crescent and the Palestinian security forces brought them some food yesterday but the army is still bulldozing and destroying the camp.” The Israeli raids have demolished dozens of houses and torn up large stretches of roadway as well as cutting off water and power, but the military has denied forcing residents to leave their homes.
“People obviously have the possibility to move or go where they want, if they will. But if they don’t, they’re allowed to stay,” Lt. Col. Nadav Shoshani told reporters.
The operation began as Israel moved to banish the main UN Palestinian relief organization UNRWA from its headquarters in East Jerusalem and cut it off from any contact with Israeli officials.
The ban, which took effect at the end of January, has hit UNRWA’s work in the West Bank and Gaza, where it provides aid for millions of Palestinians in the refugee camps.
Israel has accused UNRWA of cooperating with Hamas and said some UNRWA workers even took part in the Hamas-led attack on communities in southern Israel on Oct. 7, 2023 that set off the 15-month war in Gaza.
More than one million Syrians return to their homes: UN
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- “Since the fall of the regime in Syria we estimate that 280,000 Syrian refugees and more than 800,000 people displaced inside the country have returned to their homes,” Filippo Grandi, the UN High Commissioner for Refugees
GENEVA: More than one million people have returned to their homes in Syria after the overthrow of Bashar Assad, including 280,000 refugees who came back from abroad, the UN said on Tuesday.
Assad was toppled in December in a rebel offensive, putting an end to his family’s decades-long grip on power in the Middle Eastern country and bookmarking a civil war that broke out in 2011, with the brutal repression of anti-government protests.
Syria’s war has killed more than half a million people and displaced millions from their homes.
The Islamist-led rebels whose offensive ousted Assad have sought to assure the international community that they have broken with their past and will respect the rights of minorities.
“Since the fall of the regime in Syria we estimate that 280,000 Syrian refugees and more than 800,000 people displaced inside the country have returned to their homes,” Filippo Grandi, the UN High Commissioner for Refugees, wrote on the X social media platform.
“Early recovery efforts must be bolder and faster, though, otherwise people will leave again: this is now urgent!” he said.
At a meeting in Paris in mid-February, some 20 countries, including Arab nations, Turkiye, Britain, France, Germany, Canada and Japan agreed at the close of a conference in Paris to “work together to ensure the success of the transition in a process led by Syria.”
The meeting’s final statement also pledged support for Syria’s new authorities in the fight against “all forms of terrorism and extremism.”
Algiers slams French minister’s visit to W. Sahara
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- France’s stance on Western Sahara has been ambiguous in recent years, often straining its ties with Morocco
ALGIERS: Algeria on Tuesday denounced a visit by French Culture Minister Rachida Dati to Western Sahara, after Paris recognized Moroccan sovereignty over the disputed territory, as “objectionable on multiple levels.”
The vast desert territory is a former Spanish colony largely controlled by Morocco but claimed for decades by the Algeria-backed Polisario Front.
Dati, who described her visit as “historic,” launched with Moroccan Culture Minister Mohamed Mehdi Bensaid a French cultural mission in the territory’s main city, Laayoune.
An Algerian foreign ministry statement posted on social media Tuesday said the visit “reflects blatant disregard for international legality by a permanent member of the UN Security Council.”
“This visit reinforces Morocco’s fait accompli in Western Sahara, a territory where the decolonization process remains incomplete and the right to self-determination unfulfilled,” it said.
Dati’s trip, a first for a French official, “reflects the detestable image of a former colonial power in solidarity with a new one,” the statement added.
The United Nations considers Western Sahara to be a “non-self-governing territory” and has had a peacekeeping mission there since 1991, whose stated aim is to organize a referendum on the territory’s future.
But Rabat has repeatedly rejected any vote in which independence is an option, instead proposing autonomy under Morocco.
France’s stance on Western Sahara has been ambiguous in recent years, often straining its ties with Morocco.
But in July, French President Emmanuel Macron said Rabat’s autonomy plan was the “only basis” to resolve the Western Sahara dispute.
Algeria has backed the separatist Polisario Front and cut diplomatic relations with Rabat in 2021 — the year after Morocco normalized ties with Israel under a deal that awarded it US recognition of its annexation of the Western Sahara.
In October, the UN Security Council called for parties to “resume negotiations” to reach a “lasting and mutually acceptable solution” to the Western Sahara dispute.
In November 2020, the Polisario Front said it was ending a 29-year ceasefire with Morocco after Moroccan troops were deployed to the far south of the territory to remove independence supporters blocking the only road to Mauritania.
The Polisario Front claims the route is illegal, arguing that it did not exist when the ceasefire was established in 1991.