WNM/AP According to an AP report Palestinian banks in the West Bank are overloaded with Israeli shekels, due to limits set by the Bank of Israel on the amount that can be moved out. This surplus can’t be converted into electronic funds, making routine business and personal transactions challenging.

The Palestinian Monetary Authority's deputy governor calls the situation "economic warfare," as banks can't recycle the excess cash. Israeli employers pay Palestinians in cash, pushing bank vaults to capacity. While Gaza faces cash shortages, the West Bank has the opposite problem.

Israel justifies the restrictions with concerns over money laundering and terrorism. After the October 2023 Hamas attack, Israel imposed further restrictions, including revoking work permits and withholding tax transfers, worsening the crisis.

Businesses like Al-Huda Group have trouble paying suppliers, and gas stations have had to close temporarily. Despite strikes to raise awareness, little progress has been made. Business leaders warn that ongoing disruptions could soon impact imports of essentials like medicine and fuel.

https://apnews.com/article/west-bank-israel-banks-cash-6b94c7ee9feb7f5dbc8dda30ca777da1