The Palestinian economy has no national currency which led to having three currencies in use for deposits, saving, wealth measurement and trade transactions. The non-national currency status leads to various problemsand add additional risk aspect, due to the fact that the changes in the exchangerates between the used major currencies are so significant. Thus, it leads tomake challenges to the management of banking treasury activities andfollowing balances of each single currency. Therefore, this research aimed totarget this issue using three research instruments, including examining therelated laws, imposed by the Palestinian Monetary Authority (PMA) on banksworking in Palestinian economy, structured interviews with banks’ treasurers,and a relevant questionnaire which was directed to a selected sample oftreasury staff and employees regarding closeting of foreign currency positions.The study found that management of banks working in the Palestinian economyimposed more strict levels than that imposed by PMA regarding balances of therelated currencies. The closing of surplus of currencies available in the Bankstreasury, occur in the last hour of working day. The study recommended torelaxing the maximum ratio of each single currency to be hold, reducing therestrictions on investments outside Palestine, permitting trading in options andfuture transactions.