The State of Palestine sits at the crossroads of the Eastern Mediterranean, Western Asia, and the northeast part of Africa. It comprises a portion of modern-day Israel along with the West Bank which sits between Jordan and modern-day Israel, and the Gaza Strip that lies between Egypt and Israel. Palestine is dotted with canyons, wadis, and olive-covered hills. It is also the focal point of the Holy Land for Christians, Muslims, and Jews.
The Palestine Pound
Between 1917 and 1918, the British army set up a military administration in the state. Palestine’s monetary unit used from 1920 until 1948 was the Palestinian pound which is at par with the Pound sterling.
On June 15, 1926, the Palestine Currency Board was established and the passage of the Palestine Currency Order of His Majesty made the Palestine pound the nation’s legal tender. On November 1, 1927, the Palestine Currency Board introduced paper bills in 500 mils, 1, 5, 10. 50, and also 100 pounds denominations. These banknotes have a common design on their reverse side, reflecting the Citadel and Tower of David. These paper bills also bear a watermark in the form of an olive sprig and bear text in three official languages of Hebrew, Arabic, and English. Printed by Thomas De La Rue & Company, Limited in London, Palestine banknotes were of various colors and sizes.
In 1948, the British Mandate ended and as a result the Currency Board ceased to exist. The Palestinian pound replaces with the Israeli Shekel in the regions ruled by the Israeli Forces. On the other hand, the Gaza Strip used the Egyptian pound while the West Bank’s currency was the Jordanian Dinar.
After the six-day conflict in 1967, both the West Bank and the Gaza Strip adopted the Israeli Shekel especially in 1994, after the Paris Protocol was signed. This shift has made the Palestinian economy rely on the Israeli economy.