Israel’s Smotrich could paralyse Palestinian economy by ending bank waiver
Israel’s far-right finance minister, Bezalel Smotrich, has cancelled a waiver that Palestinian banks rely on to operate, hours after five Western governments announced he faced sanctions, along with fellow ultranationalist Minister Itamar Ben-Gvir, for inciting violence against Palestinians in the occupied West Bank.
Warnings have previously been raised that Israel’s ending of the waiver could have devastating consequences for the Palestinian economy, which is dependent on the Israeli banking system as the Palestinian Authority (PA) does not have its own central bank or currency.
“Finance Minister Bezalel Smotrich has instructed Accountant General CPA Yali Rothenberg to cancel the indemnity provided to correspondent banks dealing with banks operating in Palestinian Authority territories,” Smotrich’s office said in a statement on Tuesday, announcing the changes.
The statement also directly linked Smotrich’s decision to the PA’s international advocacy against the establishment of illegal settlements in the occupied territories, which the minister’s office described as the “delegitimisation campaign against the State of Israel internationally”.
EU urges Israel to cancel move to cut off Palestinian banks
The EU has urged Israel to abandon Finance Minister Bezalel Smotrich’s plan to revoke a waiver that enables Israeli banks to work with Palestinian counterparts – a move that could effectively cripple the Palestinian financial system.
“The European Union is deeply concerned by the instruction by Israel’s finance minister Smotrich to cancel the waiver on cooperation with Palestinian banks, which could cut them off from the Israeli financial system, devastate an already crippled Palestinian economy, and may lead to the collapse of the Palestinian Authority,” EU spokesperson Anouar El Anouni said.
“The EU calls on Israel to revert this decision immediately and to refrain from any action that could lead to the collapse of the Palestinian Authority.”
Ikea, Nestle, Carrefour bought advertising space on ultranationalist Israeli channel: Report
The Swedish newspaper ETC has published a list of international companies that purchased advertising space on Israel’s ultranationalist Channel 14 between February 27, 2024 and May 21, 2025.
The channel often broadcasts debate programmes, in which Israeli panellists advocate the total eradication of Palestinian homes in the Gaza Strip.
ETC also reported that three Israeli civil society organisations have presented extensive evidence against the channel in a petition to Israel’s Supreme Court, alleging that the television channel is inciting genocide against the Palestinians of the Gaza Strip.
The channel also receives financial benefits from the state, including significant tax exemptions and administrative costs, with the remaining funding coming in the form of advertising revenue, ETC reported.
In the past year, 50 of the 418 companies that have broadcast advertising on the channel are international or multinational companies, including the French retail giant Carrefour, the Swiss multinational food and drink processing conglomerate Nestle and multinational conglomerate Ikea, the newspaper said.
I already changed my coffee preference from Nestle to a local Canadian brand. No more Nestle chocolate either.
