Author: Dr. Maher Tayseer Al -Tabaa
The Palestinian economy is affected by the affirmative and robbery of the rise and decrease in foreign exchange rates on the shekel, the most important of which is the US dollar currency due to the lack of a Palestinian national currency for trading and all Palestinian financial transactions in the US dollar or the Jordanian dinar, and during a year from (from July 2024 to July 2025), the highest exchange rate for the US dollar against the Israeli shekel was 3.83 shekels per dollar on August 6, 2024.
The exchange rate of the shekel against the dollar fell to the lowest level during the last 12, when it reached 3.31 shekels per dollar, in July 2025.
The rate of decline on the exchange rate of the shekel against the dollar during the good year was from 3.83 to 3.31 shekels, a decrease of about 15%.
The decline of the dollar affects the Palestinian economy and all financial transactions in affirmative and robbery, as there is no Palestinian currency and all Palestinian financial transactions take place in dollars.
The positive effects of the decline in the dollar
The decrease will reduce the burden on university students and colleges, where educational fees are met in Jordanian dinars and the US dollar.
Low prices for imported goods.
The productive sector will be affected by the decrease in the exchange rate of the dollar against the shekel, as it depends on importing to cover its needs of raw materials that enter into manufacturing operations, which will contribute to reducing the price of the cost of national commodities production, as it will affect the decrease in all prices of goods imported from abroad by the low exchange rate, and this will reduce economic burdens on consumers in light of the weak purchasing power and high unemployment and poverty rates.
Citizens who receive their salaries will benefit from the shekel and have many obligations in US dollars from debts, installments or rental apartments.
Reducing the cost of paying the debt in dollars to the government or companies that pay debts densely in the dollar, as the dollar decline means that it will pay less in the shekel to pay these debts.
The negative effects of the decline in the dollar
The low value of international support and grants provided to the Palestinian people, as all grants and aid monitors foreign currencies.
A decrease in the value of the salaries of employees working in international and local institutions who receive their salaries in dollars or dinars, which will contribute to a decrease in their purchasing power and the value of their salaries when transferring them to the shekel.
The decrease in the financial return on owners of apartments and shops, as all rents for apartments and shops in the US dollar and the Jordanian dinar.
The decrease in the value of savings for Palestinian citizens, as all their savings in foreign currencies are the US dollar and the Jordanian dinar.
The perpetrators of the bidding and large tenders will be affected by the decrease in the exchange rate of the dollar against the shekel, as most of the large bids, especially with international institutions in the US dollar, and in return, they buy the materials needed for implementation of the shekel.
It is noticeable that there are many beneficiaries and losers in the event of a rise or decrease in the value of the dollar exchange on the shekel, and the situation will remain as it is until the issuance of a Palestinian national currency that is valuable and linked to international currencies.
This article expresses the point of view of its owner, and does not necessarily express the view of the Raya Media Network.
