The ceasefire in Gaza has eased the trauma of Israel’s airstrikes and blockade, but a shortage of cash has left Palestinians unable to spend what little money they have without falling victim to wartime profiteers.
Banks, many damaged or destroyed together with homes, schools and other institutions in Gaza during two years of war, began reopening on October 16, six days after the ceasefire was announced. Queues soon formed, but people left disappointed.
“There is no money, liquidity at the bank,” said father-of-six Wael Abu Fares, 61, standing outside the Bank of Palestine. “You come and do paperwork transactions and leave.”
People need cash for most daily transactions in Gaza, whether to buy food in a market or pay utility bills, but Israel blocked transfers of banknotes along with most other goods after the attack and mass hostage-taking by Hamas-led militants in October 2023.
“Banks are open and 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 greedy merchants to cash their salaries and give them cash for a huge fee, which ranges between 20% and 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, spending your life standing there,” she said. “In the end you only get 400 or 500 shekels [R2,136 or R2,670]. What can this buy with the incredibly high prices we can’t afford?”
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 basic needs.
“I work and I make 20 or 30 shekels (R107 or R160) and I leave with a loaf of bread, beans for dinner, falafel, anything, something simple,” she said while wiping notes. “Not that I can afford vegetables or anything, only enough to get by.”
Some people resort to electronic transfers through bank apps for small items such as eggs and sugar, but the sellers apply additional fees.
What matters to me is the serial number. As long as its serial number is there, I treat it as money
— Samir Namrouti, Palestinian merchant
The issue of cash supplies into Gaza was not included in US 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 and 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 grown used to banknotes that are almost unrecognisable through overuse.
“What matters to me is the serial number. As long as its serial number is there, I treat it as money.”
Reuters
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