Feasibility of Launching a Palestinian Currency Using Hypothetical Alternatives That May Fit the Specificities of the Palestinian Economy: Supporting Vs Opposition

Abstract

This research attempted to determine the viability of issuing a Palestinian currency by using hypothetical choices that may fit the uniqueness of the Palestinian economy. Because of the freezing of peace accords, the lack of Palestinian money, and the confiscation of Palestinian financial dues by the Zionist Entity, this is a positive perspective of the nature of Palestinian monetary structures. These hypothetical choices were developed because the Palestinian currency is crucial to the Palestinian economy and important in preventing financial losses such as economic rent. To that purpose, the researcher used a statistical test to investigate the viewpoints of academic specialists on this subject. The research results revealed no statistically significant variations at (α≤0.05) in respondents’ opinions regarding the prospect of issuing money using hypothetical possibilities linked to demographic factors. The authors propose that the entity in charge of administering and issuing Palestinian money be the currency commission, with the authority to progressively introduce it alongside other monetary standards in existence. This research advocated for partial issuance of total currency with a restriction on money in the system) (CC) (rather than complete is suing to cover the full monetary base in the narrow sense) (M1). Therefore, the author recommended using fictitious exchange rates, currency values, and deposit cover alternatives.