Palestine may replace Israeli currency to reduce dependency

A Palestinian boy sells fresh mint in downtown Gaza City. Palestinians have long demanded scrapping of the Israeli currency. (AFP/file)
Updated 18 February 2018
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Palestine may replace Israeli currency to reduce dependency

AMMAN: The Palestinian government has decided to begin reducing dependency on Israeli currency. Prime Minister Rami Hamdallah’s government decided on Feb. 6 to establish a committee to study “ways to shift from the use of the Israeli shekel to other currencies as well as studying the issuance of a national currency.”
Palestinians have been trying to find ways to wean themselves away from total dependency on Israel’s economy for a long time. Scrapping the Israeli currency, which is used throughout the occupied territories, has long been a demand of non-violent Palestinian activists.
Alex Awad, author of “Palestinian Memories: The Story of a Palestinian Mother and Her People,” explained the thinking behind the demand to shift away from using shekels as the primary currency for Palestinians.
“Why do we accept bills that have images of Israeli leaders on them? Why, with all of the evil measures against us, making our lives miserable, do we continue to use the currency of the very government that oppresses us? When are we going to end our addiction to their rules?” he said.
But Palestinian economists warn that the move could be disastrous for the local economy.
A retired senior monetary official told Arab News that until Palestinians are truly free and independent, there are no easy solutions to the currency issue. “When you tamper with currency you are risking a major economic problem for people,” he said.
The source, who asked not to be identified, noted that many Palestinians work in Israel. And, he added, the Paris agreement that regulates the Palestinian government’s tax and customs revenue specifies that Israeli shekels must be used in all economic dealings with Israel.
While it is easy to make some changes in the use of other currencies such as the US dollar or the Jordanian dinar, it is impossible to totally abandon the Israeli currency, the source said.
Samir Abdullah, a senior researcher at the Economic Policy Research Institute (EPRI) in Ramallah, told Arab News that it is possible to lessen dependence on the Israeli currency but that doing so would only affect a small portion of overall revenue.
“The biggest problem (is) the 7 billion shekels ($2 billion) in tax and custom revenues that come through Israel, which constitutes about 70 percent of overall revenue for the Palestinian government.”
Majed Arouri, executive director of the Civil Commission for the Independence of the Judiciary and Rule of Law, told Arab News that the Palestinian government’s decision was unwise and hasty.
“The Israeli government has been working on withdrawing the Jordanian dinar and US dollar from the Palestinian economy and has limited the availability of dinars,” Arouri said.
“The only dollar bill available in Palestine these days is the 100-dollar bill, which makes it difficult to conduct small-business dealings,” he added. Awad told Arab News that he sees the government’s decision as a small step toward Palestinian economic independence.
“This is a small act, but it is something everyone can do and it allows people to feel that they are not helping the occupiers,” he said.
Awad added that until Palestinians have their own currency, it is important to decrease their dependency on Israeli money.
“A large percentage of the currency coming to Palestine is in dollars, euros or Jordanian dinars,” he said. “Why are people so quick to change it into Israeli shekels?”
One possible solution to the dilemma that is being discussed by economists and activists is electronic banking and financial transfers.
A strong banking system and a tech-savvy population in Palestine would certainly mean that currencies other than the Israeli shekel could easily be used more often.
The EPRI’s told Arab News that one way to help lessen dependence on the shekel is to use credit cards.
“If we increase the use of credit cards, and at the same time work on a major expansion of points of sale that use these cards, we can use different currencies from the Israeli shekel,” he said.
Totally divorcing Palestinians from dependence on the Israeli economy and currency will be difficult, and the independent path that is being sought requires intense evaluation. But one thing is certain: The role of currency in a future Palestinian state is crucial.


Former Egyptian president Morsi buried in Cairo: lawyer

Updated 18 June 2019
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Former Egyptian president Morsi buried in Cairo: lawyer

  • Morsi, was suffering from a benign tumor, had continuous medical attention, says state TV
  • The former president died aged 67

CAIRO: Egypt’s first democratically elected president Mohammed Morsi was buried on Tuesday in eastern Cairo, one of his lawyers said, a day after he collapsed in court and died.

“He was buried in Medinat Nasr, in eastern Cairo, with his family present. The funeral prayer was said in Tora prison hospital” where he was declared dead on Monday, his lawyer Abdel Moneim Abdel Maksoud said.

Egyptian state television announced that Morsi, 67, who was ousted by the military on July 3, 2013, had been attending a court session at his trial on charges of espionage and links with the Palestinian militant group Hamas.

It was reported that he collapsed in the courtroom inside a glass cage he and others had been sharing, before his body was transferred to a local hospital.

Morsi died from a sudden heart attack, state television reported early on Tuesday, citing a medical source. The source said the former president, who was suffering from a benign tumor, had continuous medical attention.

Attorney-General Nabil Sadiq issued a statement saying: “The accused, Mohammed Morsi, in the presence of the other defendants inside the cage, fell unconscious, where he was immediately transferred to the hospital.

“The preliminary medical report stated that by external medical examination they found no pulse, no breathing, and his eyes were unresponsive to light. He died at 4:50 p.m. and no apparent injuries to the body were found.”

Sadiq added he had ordered the transfer of teams from the Supreme State Security Prosecution Office and the Southern Cairo Prosecution Office to conduct an investigation into Morsi’s death, and to examine surveillance footage from the courtroom and collect witness testimonies.

He also ordered that a senior forensic committee headed by the chief medical officer and the director of forensic medicine to prepare a forensic report on the cause of death.

Various outlets say that a state of high alert has been issued by the military and the Ministry of the Interior throughout the country following the news, for fear of riots or activity by the Muslim Brotherhood, in which Morsi was a prominent figure.

Morsi became president in June 2012 after the first democratic elections in the country following the overthrow of Hosni Mubarak on Jan. 25, 2011. He was Egypt’s fifth president.

He was born to a family of farmers on Aug. 20, 1951, in the village of Al-Adwa in Sharkia province. He married in 1978 and leaves behind his wife, five children and three grandchildren.

Following his deposition and arrest, Morsi was sentenced to 20 years imprisonment on Oct. 22, 2016, over bloody clashes that took place on Dec. 5, 2012 in front of the presidential palace in Cairo, between supporters of the Muslim Brotherhood and opponents of Morsi rejecting a constitutional declaration issued in November of that year.

Other sentences meant his total incarceration could have been up to 48 years, with the ongoing espionage case potentially carrying a further maximum sentence of 25 years.

In Istanbul on Tuesday, hundreds of Muslim Brotherhood supporters took to the streets, mourning former Egyptian president Mohamed Mursi and some chanting slogans blaming Cairo authorities for his death.

* With AFP