Gaza's Cash Crisis: A Struggle Beyond Ceasefire

Despite a ceasefire in Gaza easing the impact of air strikes, Palestinians face a cash shortage. Banks, damaged or destroyed during the war, have reopened but lack liquidity. Residents incur significant fees from merchants for cashing salaries, while some resort to electronic transfers despite extra charges.

The recent ceasefire in Gaza, while reducing the immediate trauma of Israel's air strikes and blockades, has not alleviated the dire cash shortage faced by Palestinians. Many banks, having suffered damage during the two years of conflict, reopened on October 16, but customers were met with disappointment due to lack of liquidity.

In Gaza, cash remains crucial for daily transactions, from buying food to paying utility bills. However, transfers of banknotes have been blocked by Israel following the October 2023 attack by Hamas-led militants. As a result, Gazans often turn to greedy merchants who charge exorbitant fees to cash their salaries, sometimes as high as 40%.

Though the United States peace plan omits the issue of cash supplies, the shortage continues to deepen the crisis for Gazans, some of whom have resorted to barter. Amidst these struggles, a few, like Manal al-Saidi, have found ways to earn a modest living, repairing damaged banknotes for daily sustenance.

(With inputs from agencies.)