October 29, 2007
The Bank of Israel on Wednesday ordered Bank Hapoalim to postpone its planned financial break with the Gaza Strip. Bank Hapoalim decided to cut all financial ties with the Strip in late September, following the security cabinet’s decision to declare Gaza a "hostile entity".
Hapoalim and Discount are the only two Israeli banks still working with the Palestinian Authority. Both decided to break with the Gaza Strip… The Israeli Shekel is the major currency used in Gaza and West Bank commerce; should both banks cut their ties with the Strip, it would create a cash-flow problem and cause significant harm to the Palestinian economy.
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