West Bank shekel glut crisis
Analysis based on 6 articles · First reported Jul 20, 2026 · Last updated Jul 20, 2026
The cash glut disrupts banking operations and trade in the West Bank, potentially leading to fuel and supply shortages. Palestinian banks' profitability is reduced, and the broader economy faces collapse if unresolved.
The Palestinian banking system in the West Bank is experiencing an excess of Israel — Israeli new shekels due to Israel limiting the amount of physical currency it accepts back from the territory. The Israel — Bank of Israel caps cash repatriation at 18 billion shekels annually, but banks accumulate an estimated 30 billion shekels per year. This surplus prevents banks from converting cash into electronic balances, hindering payments to suppliers and threatening fuel, electricity, and water imports. The crisis is exacerbated by Israeli measures since the Gaza war, including revoked work permits and withheld tax revenues. Businesses like Al-Huda Group report difficulties in paying suppliers, and gas stations staged a strike in protest. Palestinian officials accuse Israel of economic warfare.
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