Ramallah – His Excellency Mr. Azzam Shawwa, the Governor of Palestine Monetary Authority, stated that Palestine Monetary Authority was spending extensive efforts, with all relevant parties, to deal with the accumulation of shekels cash surplus at banks, which had negative impact on the stability of the Palestinian banking system in specific and the Palestinian economy in general. Palestine Monetary Authority, had prepared a national strategy, in cooperation with stakeholders, to enhance use of electronic payment methods and limit the use of cash, which was approved by the Council of Ministers in the middle of 2018, said Mr. Shawwa.
The accumulation of cash in the local market, according to Mr. Shawwa, is mainly due to relying on banknotes (cash) in selling and buying as well as cash payment of wages and salaries of Palestinian labors within the Green Line and the size of purchases made by Palestinians from within the Green Line at local markets that are paid for in cash. These are the findings of a professional and in depth and documented studies.
Palestine Monetary Authority seeks to promote the use of electronic payment methods to cover local transactions of the public and private sectors and the automation of the payment of the wages and salaries of Palestinian laborers employed within the Green Line, which means that such payment of wages and salaries would be made to laborers’ personal bank accounts immediately without delay and at minimal commissions. Palestine Monetary Authority also monitors – on continuous basis – allowing the use of payment cards by Palestinians from within the Green Line to pay for purchases made while shopping at local markets. The purpose of all these steps is to implement the national strategy to enhance use of electronic payment methods and limit the use of cash over the period of the next five years. Mr. Shawwa added that new measures would be announced once approved by stakeholders.