Currency Board White Paper

Responsible Party and Year Completed: Åke Lönnberg, 2023

Link: TBC

Status: Completed

Contact: Åke Lönnberg – 

Short term priorities:

  • Garner broad domestic political support and international backing, including from Israel, to legitimize and stabilize the proposed currency system.
  • Strengthen legal and institutional frameworks to support the implementation of a CBA, ensure the Palestinian Monetary Authority (PMA) operates within a robust legal environment.
  • Commit to stringent monetary and fiscal discipline to uphold the integrity and stability of the new currency.

Long term priorities:

  • Establish a fixed exchange rate system pegged to a strong reserve currency, preferably the U.S. dollar, to facilitate stable economic transactions and foster trust among the Palestinian business community and the international market.
  • Ensure the domestic currency is fully backed by foreign assets, with the PMA maintaining 100 percent reserves against domestic currency issuance to guarantee its commitment to the fixed exchange rate.
  • Protect the PMA from political pressures that may undermine the currency board’s effectiveness, thus ensuring the long-term viability of the new currency.

Immediate Priorities / Proposed Next Steps:

  • Finalize the selection of the U.S. dollar as the anchor reserve currency to leverage its stability and international acceptance.
  • Engage in dialogue with international stakeholders, including financial institutions and governments, to secure initial investment and support for the currency board’s establishment.
  • Develop detailed operational guidelines for the PMA regarding the issuance and management of the new currency, focusing on transparency, security features, and anti-counterfeiting measures to build and maintain public confidence in the currency.