Palestine May Introduce Its Own Currency - Envoy to Russia
15:07 07.02.2018(updated 15:43 07.02.2018)
Palestine is mulling the possibility of introducing its own currency, but
the issue remains open, Palestinian Ambassador to Russia Abdel Hafiz Nofal
said during his press conference.
"We currently have three currencies circulating — the American dollar, the
Israeli shekel and the Jordanian dinar. Our central bank is now studying
this issue [introducing its own currency]," according to the envoy.
Nofal stressed that "there are certain difficulties," adding that this
question remains open. The diplomat also noted that the issue of usefulness
of the new currency and the moment it can happen are still to be determined.
The Palestine Monetary Authority (PMA) plays the role of a central bank in
Palestine and responsible for monetary and banking policy. The Paris
Protocol agreement 1994 rules that the PMA though has the functions of a
central bank but cannot issue currency. According to the document, the use
of the Israeli shekel was recommended and Israel was granted a veto right
over a Palestinian currency.
The PMA says on its official website that its mission is "to maintain
financial stability, through the development of a sound and secure banking
system, an efficient national payments system, achieve financial inclusion,
and ensure monetary stability by keeping inflation under control and
fostering price stability."