Protestors delay money truck
Photo: Tsafrir Abayov
Olmert: Israel will continue to transfer shekels to Gaza
Following turmoil over transport of NIS 100 million to Strip, prime minister says Israel must honor commitment made after Oslo Accords to continue transfer of Israeli currency to Gaza
Prime Minister Ehud Olmert announced on Thursday that Israel will continue to provide the Palestinian Authority with shekels, even if the money serves the Hamas government, as long as the Israeli currency remains the official currency of the PA.
Olmert made the decision following the public turmoil that prevailed on Wednesday after it was decided to transfer NIS 100 million ($25.5 million) to the Strip from banks in the West Bank.
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The prime minister approved the transfer of funds through Israel, and Defense Minister Ehud Barak ordered its execution. The move honored an appeal by Palestinian Prime Minister Salam Fayyad and Governor of the Bank of Israel Stanley Fischer.
The truck loaded with cash was temporarily held up by protestors supporting kidnapped soldier Gilad Shalit, but eventually it made its way into Gaza.
Ynet has learned that Israel had made a commitment following the Oslo Accords to provide the Strip with Israeli shekels. Israel was unwilling to allow a foreign entity to print the currency and therefore promised to deliver it on dates determined by the PA.
Since then the Palestinians have been demanding the cash every month, in return for funds transferred to the Bank of Israel. The shekels are used to replace worn-out banknotes and to pay the salaries of the 70,000 PA employees in the Strip.
The World Bank has demanded that Israel continue the transfer, though it had previously advised that the Strip adopt the Egyptian pound.
The prime minister stated that Israel has been transferring money to Gaza for 15 years. "This is not our money, but theirs," he said, adding that it was not aid or a grant. He said commitments should be honored, but that the government would investigate whether it was in Israel's best interest to introduce the Egyptian pound to the Strip.
