Cash is a gauza strip life wind broken economyand as well as all the other needs in this war territory – Food, fuel, medicine – it is in extremely short procurement.
Almost almost all branch banks and ATMs, people relied on the uncomprehensive network of powerful cash brokers to get money for everyday expenses – and the commissions at these transactions increased about 40%.
“People are crying blood because,” Aiman Al-Dahdouh said, director of the school living in Gaza. “It’s choking us, starving us.”
In time Inflation riseHigh unemployment and accommodation savings, the scarcity of cash increased the financial grip on families – some of which began selling their names to buy basic goods.
Cash available even lost something from her shine. Palestinians use the Israeli currency, Shekel, for most transactions. However, with Israel, they no longer transmit territory with new printed banknotes, traders are increasingly reluctant to accept stored accounts.
Gaza punishes cash cashes has several causes of roots, experts say.
To reduce Hamas’s ability to buy weapons and pay their fighters, Israel stopped to enable cash to enter Gaza at the beginning of the war. At the same time, many rich families in Gaza pulled money from banks, and then escaped the territory. And growing fears of Gaza’s financial system encouraged a foreign company to sell goods on the territory to seek cash payments.
As Gaza’s money was installed by civilian desperate commissions in cash – about 5% at the beginning of the war – jumped.
Someone needs money that need money electronically broadcasts part of that amount in accounts later. Many intermediaries openly advertise their services, while the other is more secret. Some eating food materials and traders also started exchanging cash for their customers.
“If I need $ 60, I have to transfer $ 100,” said Mohammed Basher Al-Farr, who lives in South Gaza after displaced from Khan Ionis. “It’s the only way we can buy the basics, like flour and sugar. We lose almost half of our money just so we can spend it.”
In 2024. year inflation in Gaza increased by 230%, according to the World Bank. It fell lightly during the end of the fire that began in January, just to shoot again after Israel extradited from the truce in March.
Cash touches every aspect of life in Gaza
About 80% of people in Gaza was unemployed at the end of 2024. years, according to the World Bank, and the number is probably higher. Those with jobs are generally paid by direct deposits to their bank accounts.
But “When you want to buy vegetables, food, water, medicine – if you want to download or need a blanket or anything, you need to use the cash,” Al-Dahdouh said.
The Shahida Ajjour family lives from savings for two years after the pharmacy and other businesses that the owner destroyed the war.
“We had to sell everything just to get money,” Ajour said, who sold the gold to buy flour and canned beans. Family of eight spends the equivalent of $ 12 every two days on the flour; Before the war, it costs less than $ 4.
The sugar is very expensive, costing the equivalent of 80 to $ 100 per kilogram (2.2 kilograms), said more people; Before the war, it cost fewer than $ 2.
Gasoline is about $ 25 from a liter, or approximately $ 95 a gallon, when paying lower prices in cash.
Accounts are worn and unusable
The accounts in Gaza are loaded after 21. month of war.
The money is so brittle, it feels like it will be melting in your hands, Mohammed Al-Avilini, who lives in a tent camp in South Gaza.
The owners of small businesses said they were under pressure to set customers for undamaged cash because their suppliers demand untouched accounts of them.
Thaeir Suhwail, a lawn dealer in Deir Al-Balah, said his suppliers recently demanded them only with a fully new notes of the 200-Shekel Bank, which said they were rare. Most civilians pay him with 20-Shekel ($ 6) notes that are often in poor condition.
At a recent visit to the market, the ajjour shifted the shekel equivalent to about $ 100 on the broker and received about $ 50 in return. But when she tried to buy some household supplies from the merchant, she was turned because the bills were not in good condition.
“So the value of your $ 50 is at the end of Zero,” she said.
This problem gave a new job in Gaza: Money Repair. Costs between 3 and 10 shekel (1- $ 3) to fix old bank notes. But even cash was repaired with tape or other means sometimes rejected.
People are on the mercy of money shipper
After most banks closed in the early days of the war, those with large cash reserves suddenly had enormous power.
“People are on their grace,” Mahmoud Akel said, who was displaced from his home in South Gaza. “No one can stop them.”
The war prevents the regulation of market prices and courses, said Dalia Arazz, Finance Expert and Accounting at the University of West Scotland. “No one can physically follow what’s going on,” Alazzeh said.
A year ago, the Monetary Administration of Palestine, the equivalent of the Central Bank for Gaza and Western Bank, tried to facilitate the crisis by introducing a digital payment system known as Iburac. He attracted half of a million users, or a quarter of the population, towards the World Bank, but eventually ordered traders who insisted on cash.
Israel sought to be borne by financial pressure on Hamas at the beginning of this year, by tightening the distribution of humanitarian aid, which he said militant from militants and then resold.
Experts said that it is unclear if the activities of money brokers use Hamas, as they require some Israeli analysts.
The war made it difficult to determine who was behind all kinds of economic activity in the territory, said Omar Shabaan, director of Paltinka for strategic studies, based on Tank Cistera.
“It’s a dark place now. You don’t know who brings cigarettes in Gaza,” he said, giving only one example. “It’s like a mafia.”
These same deep pocket traders are probably those who lead brokerage medines and sell basic food groceries, he said. “They benefit by imposing these commissions,” he said.
Once families run out of cash, they are forced to turn to humanitarian aid.
Al-Farra said it asked for it to start looking for food in the distribution center of aid, where the Commont is to crush on others for flour bags and boxes and boxes.
“It’s the only way I can feed my family,” he said.
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Kullab reported from Jerusalem.
