Conference calls for currencies basket for future Palestinian currency

Participants in a conference designed to study prospects of establishing an independent banking sector for the Palestinian-administered regions called on Sunday for establishing an adequate environment to issue a Palestinian currency.

Participants at the two-day conference, held at the Arab League headquarters, called for linking up the future Palestinian currency with a basket of currencies from neighboring countries and the Euro.

They predicted a drop of the Palestinian commercial dealings with Israel following the end of the final status negotiations, and anticipated a limited impact of the Israeli currency once commercial cooperation with Jordan increases.

The conferees called on Israel to pay compensations to the Palestinians for losses they have incurred as a result of using the shekel -- estimated at $ 400-500 million.

The conference was organized by the 22-member league in coordination with Arab Monetary Fund.