Overview

• US Deputy Treasury Secretary Wally Adeyemo met with Bank of Israel Governor Amir Yaron to discuss extending banking relations with Palestinian banks for at least a year.
• The current banking correspondence authorization between Israeli and Palestinian banks is set to expire on October 31, affecting transactions valued at nearly $10 billion.
• US officials have expressed concerns that cutting off Palestinian banks could lead to economic instability in the West Bank, posing risks to both regional and Israeli security.
• Treasury Secretary Janet Yellen and other US officials have raised the issue at international forums, including the Group of Seven finance ministers meeting.
• The World Bank reports that Palestinian territories are nearing economic freefall, with Gaza's GDP declining sharply and the Palestinian Authority facing a significant financing gap.