RAMALLAH, Palestinian Territories: Palestinian teenagers bounced on trampolines and jumped through hoops inside a towering tent on the outskirts of Ramallah, the financial hub of the occupied West Bank.
But the circus students weren’t the only ones bending over backwards in the pavilion: the school’s director faced financial hurdles to buy the tent from Europe and trampolines from Asia.
“We are suffering with international payments,” said Mohamad Rabah, head of the Palestinian Circus School, describing a bureaucratic process that could delay equipment delivery by up to a month.
Banking in the Palestinian territories is challenging, with the Palestinian Authority (PA) under scrutiny for potential terror financing, hindering transactions.
Israel has occupied the West Bank since 1967, with strong economic ties allowing two Israeli lenders to serve as correspondent banks in the Palestinian territory.
But this may change if Israel’s far-right Finance Minister Bezalel Smotrich carries out threats to sever a vital banking route next month.
Since Hamas’s October 7 attack triggered the Gaza war, Israel has imposed economic curbs on the PA, withholding tax revenues it collects on its behalf.
Smotrich said this week he had redirected $35 million in PA tax revenues to families of “terrorism” victims, a move condemned by the United States.
After three European countries recognized Palestinian statehood in May, Smotrich told Prime Minister Benjamin Netanyahu he would not extend indemnity to banks that transfer the funds from the end of June.
Israel’s Bank Hapoalim and Israel Discount Bank need protection, expiring on July 1, to avoid sanctions for dealing with Palestinian lenders.
Israel’s central bank and finance ministry declined to comment when contacted by AFP.
The banking channel used to pay for West Bank imports — including essential goods like water, fuel and food — handles $8 billion yearly.
Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority.
“For us, because our economy is dependent on the Israeli economy, because Israel is controlling the border, the impact will be high,” said PMA governor Feras Milhem.
The Palestinian economy is largely governed by the 1994 Paris Protocol, which granted sole control over the territories’ borders to Israel, including the right to collect import duties and value-added tax for the PA.
Palestinian livelihoods have also been hurt by bans on laborers crossing into Israel and by a sharp downturn in tourism in the territory, including a quiet Christmas season in Bethlehem.
The United States has urged Israel to improve conditions, warning that severing the banking route would have a dire impact on the West Bank economy.
“I believe it would create a humanitarian crisis in due course if Palestinian banks are cut off from Israeli correspondence,” US Treasury Secretary Janet Yellen said last month.
Western governments fear Israel’s economic policies could destabilize the West Bank.
“The banking system may collapse and therefore the PA may collapse as well,” a European diplomatic source in Jerusalem said on condition of anonymity.
“The PA is in a financial crisis and it could collapse before August.”
Palestinian businessmen say their bottom lines have been hit since October 7.
Imad Rabah, who owns a plastics company, said his net income had fallen 50 percent in one year.
Arak producer Nakhleh Jubran said his liquor business had fallen 30 percent over the same period.
“We have a traditional war in Gaza and we have an economic war in the West Bank,” said Jubran.
Musa Shamieh, who owns a womenswear company said the Israeli policies were designed to push Palestinians to leave the West Bank.
“They want us to leave our land and they know it will be hard for us to stay if we can’t do business,” Shamieh said.
Israel’s harsh economic policies could eventually drive Palestinian policymakers to pursue sweeping changes to the monetary system.
“We need to work on a plan B when it comes to the trade relations,” said Milhem, governor of the PMA, which uses an image of the former Palestinian pound as its logo.
Yousef Daoud, professor at the West Bank’s Birzeit University, said the territory could scrap the shekel as its de facto currency in favor of a digital alternative.
“We can make our e-currency, just collect all the shekels, issue an equivalent amount of Palestinian pounds, one-to-one fixed exchange rate, and have the Palestinians deal with e-currency,” he said.
“Somehow, eventually, we’ll get rid of the shekel.”
Israel’s ‘economic war’ chokes occupied West Bank
https://arab.news/yux28
Israel’s ‘economic war’ chokes occupied West Bank
- Banking in the Palestinian territories is challenging, with the Palestinian Authority under scrutiny for potential terror financing
- Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority
Sudan’s prime minister takes his peace plan to the UN, but US urges humanitarian truce now
- Sudan’s prime minister is proposing a wide-ranging peace initiative to end a nearly 1,000-day war with a rival paramilitary force
- It seems unlikely the RSF would support the proposal, which would essentially give government forces a victory and take away their military power
UNITED NATIONS: Sudan’s prime minister on Monday proposed a wide-ranging peace initiative to end a nearly 1,000-day war with a rival paramilitary force, but the United States urged both sides to accept the Trump administration’s call for an immediate humanitarian truce.
Kamil Idris, who heads Sudan’s transitional civilian government, told the Security Council his plan calls for a ceasefire monitored by the United Nations, African Union and Arab League, and the withdrawal of paramilitary forces from all areas they occupy, their placement in supervised camps and their disarmament.
Sudan plunged into chaos in April 2023 when a power struggle between the military and the powerful paramilitary Rapid Support Forces exploded into open fighting, with widespread mass killings and rapes, and ethnically motivated violence. This has amounted to war crimes and crimes against humanity, according to the UN and international rights groups.
It seemed highly unlikely the RSF would support the prime minister’s proposal, which would essentially give government forces a victory and take away their military power.
In an indirect reference to the truce supported by the US and key mediators Saudi Arabia, Egypt and the United Arab Emirates, known as the Quad, Idris stressed to the UN Security Council that the government’s proposal is “homemade — not imposed on us.”
In early November, the Rapid Support Forces agreed to a humanitarian truce. At that time, a Sudanese military official told The Associated Press the army welcomed the Quad’s proposal but would only agree to a truce when the RSF completely withdraws from civilian areas and gives up their weapons — key provisions in the plan Idris put forward on Monday.
Idris said unless the paramilitary forces were confined to camps, a truce had “no chance for success.” He challenged the 15 members of the Security Council to back his proposal.
“This initiative can mark the moment when Sudan steps back from the edge and the international community — You! You! — stood on the right side of history,” the Sudanese prime minister said. He said the council should “be remembered not as a witness to collapse, but as a partner in recovery.”
US deputy ambassador Jeffrey Bartos, who spoke to the council before Idris, said the Trump administration has offered a humanitarian truce as a way forward and “We urge both belligerents to accept this plan without preconditions immediately.”
Bartos said the Trump administration strongly condemns the horrific violence across Darfur and the Kordofan region — and the atrocities committed by both the Sudanese Armed Forces and the Rapid Support Forces, who must be held accountable.
UAE Ambassador Mohamed Abushahab, a member of the Quad, said there is an immediate opportunity to implement the humanitarian truce and get aid to Sudanese civilians in desperate need.
“Lessons of history and present realities make it clear that unilateral efforts by either of the warring parties are not sustainable and will only prolong the war,” he warned.
Abushahab said a humanitarian truce must be followed by a permanent ceasefire “and a pathway toward civilian rule independent of the warring parties.”
UN Assistant Secretary-General for political affairs Khaled Khiari reflected escalating council concerns about the Sudan war, which has been fueled by the continuing supply of increasingly sophisticated weapons.
He criticized unnamed countries that refuse to stop supplying weapons, and both government and paramilitary forces for remaining unwilling to compromise or de-escalate.
“While they were able to stop fighting to preserve oil revenues, they have so far failed to do the same to protect their population,” Khiari said. “The backers of both sides must use their influence to help stop the slaughter, not to cause further devastation.”
The devastating war in Sudan has killed more than 40,000 people according to UN figures, but aid groups say the true number could be many times higher. The conflict has created the world’s largest humanitarian crisis, with over 14 million people displaced, disease outbreaks and famine spreading in parts of the country.
