What Happened to The Palestinian Pound?
“Currency is like God, it exists as long as people believe in it.” Abhijit NaskarBy: Ahmed Abu Sultan/ Arab America Contributing Writer Palestinian heritage has always been the strongest link that Arabs hold on for their legitimacy as natives of Palestine. Many items that are considered lacking in value are held on strongly by Palestinians and refugees everywhere in the world, such as their native house in their point of origin. One of the items that were kept strictly to preserve the identity of Palestinians was the Palestinian pound. Decommissioned for use nowadays, it is only kept as a distant memory for Palestinians everywhere that one day they will use it again. So, what happened to the Palestinian pound?
Ottoman Lira
Ever since the 4th century B.C., the usage of the currency was necessary for commerce to commence while sustaining a sense of value to the goods traded. Currency evolved for centuries and took many forms depending on the time period. It was not until the 18th century that currency exchange was brought into the international stage. It all started with British agents trading currency for the British sphere of influence. The year 1880 is considered by at least one source to be the beginning of modern foreign exchange: the gold standard began in that year. Ever since then, the currency was held a set value in comparison to the amount of gold the issuing state had. It was not until the mid 20th century that other natural resources began determining the value of the currency.
In Palestine, the Ottoman lira dominated the field of currency for the general population there. Between 1844 and 1855, coins were introduced in denominations of 1, 5, 10, 20 para, 1⁄2, 1, 2, 5, 10, 20 kuruş and 1⁄4, 1⁄2, 1, 2 1⁄2, and 5 lira. The central Ottoman Bank first issued paper currency Kaime in 1862, in the denomination of 200 kuruş. The notes bore texts in Turkish and French. The purpose of this currency served the population of Palestinians for both commerce and agriculture. It was not until after the Ottoman government collapsed completely, after its representatives signed the Treaty of Sèvres in 1920, that the state saw a change in currency use.
“If two fish fight in the Tigris, the British are behind it” Iraqi ProverbMandatory Palestine
It was a geopolitical entity established between 1920 and 1948 in the region of Palestine under the terms of the Mandate for Palestine. During the First World War (1914–18), an Arab uprising and the British Empire’s Egyptian Expeditionary Force under General Edmund Allenby drove the Turks out of the Levant during the Sinai and Palestine Campaign. The United Kingdom had agreed in the McMahon–Hussein Correspondence that it would honor Arab independence if they revolted against the Ottomans. However, the UK and France ended up dividing up the area under the Sykes-Picot Agreement which was an act of betrayal to the Arabs. Further complicating the issue was the Balfour Declaration of 1917, promising British support for a Jewish “national home” in Palestine.
During that period in time, the Ottoman lira became obsolete and was effectively replaced by the local version of the pound sterling, later named the Palestinian pound. The purpose of this change is to erase any remaining claims the Ottomans had on Palestine since the population does not speak the language or use the currency. This was very successful and the locals eventually embraced the change by buying the new currency and establishing bank accounts based on its value. One of the greatest tragedies of the Palestinian catastrophe was buying the pound instead of preserving their resources. It only took them less than two generations to realize the grave error they made.
“Among the most disturbing political phenomena of our times is the emergence in the newly created state of Israel of the “Freedom Party” (Tnuat Haherut), a political party closely akin in its organization, methods, political philosophy and social appeal to the Nazi and Fascist parties. It was formed out of the membership and following of the former Irgun Zvai Leumi, a terrorist, right-wing, chauvinist organization in Palestine.” Albert Einstein in a letter to the New York TimesPalestinian Exodus
In 1948, half of the Palestinian natives were expelled from their homeland, approximately 700,000 of them. Never has our modern times saw a tragedy so great and nothing was done to prevent such loss of human life. Around 80 percent of the Arab inhabitants of what became Israel left or were expelled from their homes, similar to how over 60 percent of Jews were forced to emigrate from Germany in the tragic events of the 1933-1945 period. Factors involved in the exodus include Jewish military advances, destruction of Arab villages, and psychological warfare. In addition to fears of another massacre by Zionist militias after the Deir Yassin massacre, which caused many to leave out of panic. Direct expulsion orders by Israeli authorities, the involuntary removal of the wealthier classes, collapse in Palestinian leadership, and Arab evacuation orders were huge contributors to the exodus. Later, a series of laws passed by the first Israeli government prevented Arabs who had left from returning to their homes or claiming their property. They and many of their descendants remain refugees. The expulsion of the Palestinians has since been described by some historians as ethnic cleansing.
Hundreds of thousand people displaced, hundreds of villages erased from the map, and complete cleansing of Palestinian history. However, the identity of every Palestinian is still alive and present after over 80 years. The reason for that is not just the strict attachment Palestinians have for their heritage, but their sight for the future. It has been years and years, and they will always say the same thing “Tomorrow we will be whole Insha Allah”. I have seen many people who conserved what is now considered to be an ancient currency until the day comes where they will use it again. Others hold on to the keys of houses that are longer present. All for a dream that one day they will see their homes again. Right now, most of the 1948 assets, held by British banks, were surrendered. Records of these transactions will forever mark that regime present in this catastrophe.
Ironic is it not, the landing of one person led to the diaspora of another. I hope that one day, the land that was gifted to us by God if you are a believer, will one day be whole again. The time will come when Palestine is safe for every single decent human being in this world. When that day comes, perhaps after my generation’s passing or even further away, it will not only be celebrated by Palestinians but every good human being on this planet.
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