No Prospects for Palestinian Currency
With Israeli maintaining control of the Palestinian economy and internal divisions stalling reconciliation, a Palestinian currency seems little more than a dream, writes Omar Shaban.
Reinstating the Palestine pound has long been a dream for Palestinians. Nevertheless, amid the Palestinians’ eagerness to consolidate their sovereignty and in view of the reality of the Palestinian economy that is controlled by Israel, not to mention the losses and challenges that could result from such a step, it seems that this Palestinian dream still has a long way to go before becoming a reality.
During the era of the Ottoman Empire, the Ottoman lira was the currency circulated in Palestine. With the beginning of the British Mandate, the pound sterling was introduced and was linked to the Egyptian pound. In the late 1940s, the government of the British Mandate decided that the time had come to issue a Palestinian currency. This decision, however, was strongly rejected by Palestinian civil organizations — such as the Christian-Muslim association in Haifa, the chambers of commerce and national forces. They were opposed to this step on the basis that the Palestinian government was not independent, as it operated under the control of the British High Commissioner.
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