In Palestinian territories, the Israeli shekel is being used, as in Israel. In some Palestinian cities, you may encounter persons counting in JD (Jordanian Dinars). For the sake of the story, some Palestinian organisations use the JD as the monetary unit for their accountancy. Exchange rate in October 2005 is of ca. 1 USD=4,5 NIS, 1 EUR=5,5 NIS
A number of exchange offices around Sala'addin street in East-Jerusalem offer good exchange rates. Cash machines exist here and there, not as frequently as in neighbouring Israel, and they do not always accept international credit or debit cards.
Credit cards are far less used than in Israel. Always have an amount of cash with you.
Costs are much higher than in other Middle-Eastern countries (Egypt, Jordan, Syria), slightly less expensive than in Israel.