The Poalim Bank group has decided to stop conducting deals with banks in Gaza as soon as the end of the coming month. Months of deliberation went into the decision, which is based to a large degree on the Security Cabinet decision to declare Gaza a terrorist entity.
Bank Discount also wants to stop providing money and financial services to banks in Gaza, but strong opposition by the Bank of Israel (BOI) is delaying the process.
The Bank of Israel is concerned that if it becomes forbidden to transfer money to Gaza, the Arabs might stop using the shekel and switch to the Egyptian lira.