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
Sudan defense minister dismisses ‘intelligence document’ as fabrication after convoy strike
- Gen. Hassan Kabroun tells Arab News claims that army hid weapons in aid convoy are “completely false”
RIYADH: Sudan’s defense minister has firmly denied reports attributed to Sudanese intelligence alleging that a convoy targeted in North Kordofan was secretly transporting weapons under the cover of humanitarian aid.
Gen. Hassan Kabroun described the claims as “false” and an attempt to distract from what he called a militia crime.
The controversy erupted after news reports emerged that a document attributed to Sudan’s General Intelligence Service claimed the convoy struck in Al-Rahad on Friday was not a purely humanitarian mission, but was instead carrying “high-quality weapons and ammunition” destined for Sudanese Armed Forces units operating in the state.
The report further alleged that the convoy had been outwardly classified as humanitarian in order to secure safe passage through conflict zones, and that the Rapid Support Forces had destroyed it after gathering intelligence on its route and cargo.
Kabroun categorically rejected the narrative.
“First of all, we would like to stress the fact that this news is false,” he told Arab News. “Even the headline that talks about the security of the regions, such as Al-Dabbah, is not a headline the army would use.”
He described the document as fabricated and politically motivated, saying it was designed to “cover up the heinous crime they committed.”
The minister affirmed that the area targeted by drones is under full control of the Sudanese Armed Forces and does not require any covert military transport.
“Second, we confirm that the region that was targeted by drones is controlled by the army and very safe,” Kabroun said. “It does not require transporting any military equipment using aid convoys as decoys because it is a safe area controlled by the army, which has significant capabilities to transport humanitarian aid.”
According to the minister, the Sudanese military has both the logistical capacity and secure routes necessary to move equipment openly when needed.
“The army is professional and does not need to deliver anything to Kadugli or Dalang on board aid convoys,” he said. “The road between Dalang and Kadugli is open. The Sudanese forces used that road to enter and take control of the region. The road is open and whenever military trucks need to deliver anything, they can do so without resorting to any form of camouflage.”
Kabroun further rejected any suggestion that the military uses humanitarian operations as cover.
“Aid is transported by dedicated relief vehicles to the areas in need of this assistance,” he said. “Aid is not transported by the army. The army and security apparatus do not interfere with relief efforts at all, and do not even accompany the convoys.”
He stressed that the Sudanese Armed Forces maintains a clear institutional separation between military operations and humanitarian work, particularly amid the country’s crisis.
“These are false claims,” he said. “This fake news wanted to cover up the heinous crime they committed.”
Sudan has been gripped by conflict since April 2023, when fighting broke out between the Sudanese Armed Forces and the Rapid Support Forces, plunging the country into what the United Nations has described as one of the world’s worst humanitarian disasters.
The latest dispute over the convoy comes amid intensified fighting in South Kordofan, a strategically sensitive region linking central Sudan with the contested areas of Darfur and Blue Nile.
The false report suggested that intelligence monitoring had enabled the RSF to strike what it described as a military convoy disguised as humanitarian aid. But Kabroun dismissed that version outright.
“The intelligence agency is well aware of its duties,” he said. “The Sudanese Army has enough weapons and equipment to use in the areas of operations. These claims are completely false.”
He argued that the narrative being circulated seeks to shift blame for attacks on civilian infrastructure and humanitarian movements.
“This shows that they are trying to cover up the atrocities,” he added, referring to the militia.
Kabroun maintained that the army has regained momentum on multiple fronts and remains fully capable of sustaining its operations without resorting to deception.
“The region is secure, the roads are open, and the army does not need camouflage,” he said. “We are operating professionally and transparently.”
“These claims are completely false,” Kabroun said. “The Sudanese Army does not use humanitarian convoys for military purposes.”
