Newly reopened banks in Gaza lack cash for withdrawals, forcing residents to pay huge fees to access salaries amid ongoing economic crisis.
GAZA: The recent ceasefire has temporarily halted Israeli air strikes but Gazans now face a severe cash shortage that prevents them from spending what little money they possess without falling victim to wartime profiteers.
Banks across Gaza began reopening on October 16 following the ceasefire announcement after many sustained damage or destruction during two years of conflict.
Long queues quickly formed outside financial institutions like the Bank of Palestine as residents sought access to their funds.
Father-of-six Wael Abu Fares expressed disappointment after visiting his bank and finding no available cash for withdrawal.
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People require physical currency for most daily transactions in Gaza including food purchases and utility bill payments.
Israel blocked banknote transfers along with most other goods following the Hamas-led militant attack and mass hostage-taking in October 2023.
Gaza economist Mohammad Abu Jayyab confirmed that banks primarily conduct electronic business without cash deposits or withdrawals.
Desperate residents now pay greedy merchants between 20% and 40% fees to cash their salaries through unofficial channels.
Mother-of-seven Iman al-Ja’bari recalled when bank transactions took less than an hour compared to current multiple-day ordeals.
She questioned how 400-500 shekels could cover basic needs given today’s incredibly high prices in Gaza.
Some Gazans like Manal al-Saidi have found opportunity in the crisis by repairing damaged banknotes for small earnings.
She makes just 20-30 shekels daily which barely covers simple items like bread and beans for dinner.
Electronic transfers through bank apps now occur even for small purchases like eggs or sugar with sellers applying additional fees.
The cash supply issue was notably absent from US President Donald Trump’s 20-point peace plan for the region.
Israel’s military coordination unit COGAT did not respond to inquiries about when banknotes might be permitted into Gaza.
This currency shortage compounds the broader crisis for Gazans who have lost relatives jobs homes and savings.
Some residents have resorted to barter systems to obtain essential goods amid the financial collapse.
Merchant Samir Namrouti now accepts heavily worn banknotes as long as their serial numbers remain visible. – Reuters
