Cash shortage deepens Gaza’s economic despair as residents pay heavy fees to access their own money | The Express Tribune

A shortage of cash in Gaza has left Palestinians unable to spend what little money they have without falling victim to wartime profiteers.

Banks, many damaged or destroyed along with homes, schools and other institutions across Gaza during two years of war, began reopening on October 16, six days after the ceasefire was announced. Queues soon formed but people came away disappointed.

“There is no money, liquidity at the bank,” said father-of-six Wael Abu Fares, 61, standing outside the Bank of Palestine. “You just come and do paperwork transactions and leave.”

People need cash for most everyday transactions in Gaza, whether to buy food in the market or pay utility bills, but Israel blocked transfers of banknotes along with most other goods following the attack and mass hostage-taking by Hamas-led militants in October 2023.

HUGE FEES TO CASH SALARIES

“Banks are open, Air conditioning is on, but they are mostly doing electronic business, no deposits, no withdrawals of cash,” Gaza economist Mohammad Abu Jayyab told Reuters.

“People go to some greedy merchants to cash their salaries and they give them cash for a huge fee, which ranges between 20% and sometimes goes to 40%.”

Mother-of-seven Iman al-Ja’bari longs for a time when transactions at banks used to take less than an hour.

“You need two or three days to go back and forth, back and forth, spending your whole life standing there,” she said. “And in the end, you only get 400 or 500 shekels ($123 or $153). What can this (amount) buy with the incredibly high prices today that we can’t afford?”.

Read: Israel insists it calls shots in Gaza

For a few Palestinians, the cash crunch has provided an opportunity to eke out a living. Manal al-Saidi, 40, repairs damaged banknotes to cover some basic needs.

“I work and I make 20, 30 shekels ($6, $9), and I leave with a loaf of bread, beans for dinner, falafel, anything, something simple,” she said, wiping notes.

“Not that I can get (afford) vegetables or anything, no, just enough to get by.”

Some people resort to electronic transfers through bank apps for even small items such as eggs or sugar, but the sellers apply additional fees.

The issue of cash supplies into Gaza was not included in U.S. President Donald Trump’s 20-point peace plan, which also left the details of reconstruction and security to be decided.

COGAT, the arm of the Israeli military that oversees aid flows into the Gaza Strip, did not immediately respond to a request for comment on whether or when banknotes may be allowed back in.

The shortage of notes and coins has compounded the crisis for Gazans who have lost relatives, jobs and homes, used up their savings and sold their possessions to buy food, tents and medications. Some have resorted to barter to get by.

Palestinian merchant Samir Namrouti, 53, has got used to banknotes that are almost unrecognisable through overuse.

“What matters to me is its serial number. As long as its serial number is there, that’s it, I treat it as money,” he said.