Regulatory Alerts2020-01-01
Monetary Developments Report – Third Quarter 2020
The Palestinian Monetary Authority issued its Third Quarter 2020 Monetary Developments Report, detailing a 3.1% rise in local liquidity to $13.2 billion, a 2.9% decline in reserve money to $1.6 billion, and a 10.5% drop in official foreign reserves to $624.6 million. The report highlights a contraction in legal bank liquidity to 41.4%, a narrowing interest rate margin across USD, JOD, and ILS, and a 2.9% increase in M2 money supply to $17.7 billion, driven by a revised methodology for estimating currency in circulation outside the banking system. These developments reflect the impact of the COVID-19 pandemic and the stock market crisis on credit demand, deposit growth, and overall monetary conditions in the Palestinian economy.
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