DEIR AL-BALAH, Gaza Strip (news agencies) — Cash is the lifeblood of the Gaza Strip’s shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply.
With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses — and commissions on those transactions have soared to about 40%.
“The people are crying blood because of this,” said Ayman al-Dahdouh, a school director living in Gaza City. “It’s suffocating us, starving us.”
At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods.
The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills.
Gaza’s punishing cash crunch has several root causes, experts say.
To curtail Hamas’ ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza’s financial system prompted foreign businesses selling goods into the territory to demand cash payments.
As Gaza’s money supply dwindled and civilians’ desperation mounted, cash brokers’ commissions — around 5% at the start of the war — skyrocketed.
Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers.
“If I need $60, I need to transfer $100,” said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. “This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it.”
In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March.
About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts.
But “when you want to buy vegetables, food, water, medication — if you want to take transportation, or you need a blanket, or anything — you must use cash,” al-Dahdouh said.
Shahid Ajjour’s family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war.
“We had to sell everything just to get cash,” said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4.
