Abbas approves new Palestinian central bank chief

RAMALLAH (Reuters) - President Mahmoud Abbas on Sunday approved the nomination of a Western-educated technocrat to head the Palestinian Authority's embryonic central bank, Abbas's office said.

Jihad Wazir, 44, was nominated by Abbas's prime minister, Salam Fayyad, to replace George Abed, who stepped down last month as governor of the Palestine Monetary Authority (PMA). Wazir was Abed's deputy and has been acting governor in the interim. He will officially begin his term on January 1.

The PMA is mandated to manage a Palestinian currency once a state is established. Palestinians in the West Bank and Gaza now use Israeli shekels, U.S. dollars and Jordanian dinars.

Wazir, who has a doctorate in business administration, told Reuters he would "embark on the task of introducing more reform to the Palestine Monetary Authority", with the aim of establishing a formal central bank.

Western officials have credited the PMA with reforming the banking system and implementing international rules, including pressuring Palestinian banks to sever ties with militant groups.

Abbas said Wazir's appointment would be presented to the Hamas-dominated Palestinian Legislative Council.

However, the council has not functioned since the Hamas Islamist group seized the Gaza Strip during a brief civil war in June, and Abbas has the power to appoint the governor without getting its approval.

(Reporting by Mohammed Assadi, Writing by Ari Rabinovitch; Editing by Kevin Liffey)