The PMA (www.pma.org) was established in December of 1994. The passing of the PMA Law (Law No. 2 / 1997) by the PLC was essential because it regulated banking activities, money changers’ activities, and foreign exchange movement in Palestine . The law is fairly comprehensive and it states that the PMA Governor is to be appointed by the president of the PNA. This is of course a political appointment and it does not contribute to the independence of the Governor. So far, it probably has not hurt the Palestinian economy so much but it will in due time when the PMA gets the required tools to conduct an independent monetary policy.