Gaza suffocated by the lack of cash, with citizens losing up to half their money, as they are forced to pay a supply to find cash and buy basic goods. Intermediaries dominate the economy, and humanitarian aid is done for many the only way out.

As the Associated Press points out in his article, cash is the vital “oxygen” of the dissolved economy of the Gaza Strip and, like any other basic need – free, fuel, medicines – are in a dramatic shortage.

With almost all bank branches and ATMs, citizens are now relying on an uncontrolled network of powerful intermediaries to secure money for their daily needs with supplies reaching up to 40%.

“The world is crying,” says Aiman al-Dahduch, a school principal in Gaza. “It drowns us, starves us.”

In a period of galloping precision, unemployment and exhausted savings, the lack of fluid exacerbates the financial suffocation of families, some of which are forced to sell their personal belongings to buy basic goods.

Even the available cash has lost part of their value. The Palestinians use the Israeli currency, the Shekel, for most transactions. But as Israel no longer refunds Gaza with new notes, many traders refuse to accept worn out banknotes, further exacerbating the financial crisis.

In order to limit Hamas’ ability to buy weapons and pay its fighters, Israel has stopped allowing cash to enter the Gaza from the start of the war. At the same time, many wealthy Gaza families withdrew their money from the banks and escaped the area. At the same time, the growing concern about the state of the financial system in Gaza has led foreign businesses that trade goods on Palestinian territory to require cash payments exclusively.

As the circulation of money in Gaza declined dramatically and the despair of civilians increased, the supplies of the intermediaries have been soared, from about 5% at the beginning of the war at rates now reaching 40%.

The process is simple but painful for citizens: one transfers electronic money to an intermediary, and within minutes they receive only a small part of the amount to banknotes.

Many of these intermediaries openly advertise their services, while others act more discreetly. Even some grocer and shopkeepers have begun to offer cash exchange to their customers, attempting to fill the liquidity gap that drowns daily life.

‘We lose almost half of our money’

“If I need $ 60, I have to send 100,” says Mohammed Bashir al-Fara, who lives in southern Gaza after being displaced by Han Younes. “This is the only way to buy basics, such as flour and sugar. We lose almost half of our money just to be able to spend it. “

In 2024, inflation in Gaza was launched to 230%, according to the World Bank. There was a slight decline during the truce that began in January, but prices were re -raised when Israel left the ceasefire agreement in March.

In Gaza, cash touches every aspect of everyday life. About 80% of the population was unemployed at the end of 2024, according to the World Bank and the rate is likely to be even higher today. Those who work are mainly paid through deposits in their bank accounts.

But “if you want to buy vegetables, food, water, medicines, if you need movement, blanket or whatever, you must have cash,” says Aiman al-Dahduch.

Sahid Adjour’s family survives the savings of the last two years after the pharmacy and the other family business have been destroyed by war.

“We sold everything just to have cash,” says Adjour, who was forced to sell her goldsmiths to buy flour and canns. The eight -member family spends $ 12 every two days on flour, while before the war the same quantity cost less than $ 4.

‘Sugar costs $ 100 per kilo’

Sugar has been turned into a luxury in the Gaza Strip, as it now costs $ 80 to $ 100 per kilo, and before the war, its price was below $ 2.

Petrol costs about $ 25 per liter, that is, almost $ 95 a gallon, even at the “low” cash payment price.

The notes are worn and largely useless.

After 21 months of war, the cash available in Gaza are in a tragic condition.

“Banknotes are so fragile that you think they will melt in your hands,” says Mohammed al-Awin, who lives in camp with southern Gaza.

Petty traders and shopkeepers say they are pressured to ask their customers in excellent condition, because their own suppliers require new banknotes without damage.

Thayir Suele, a flour dealer in Deir al -Balah, said his suppliers had recently asked him to pay exclusively with brand new $ 200 ($ 60) banknotes – which are extremely rare. Most citizens pay for it with worn banknotes of 20 Sekel ($ 6).

A year ago, the Palestinian Monetary Authority, the Central Bank for Gaza and the West Bank, attempted to relieve the liquidity crisis by introducing a digital payment system called Iburaq. The system attracted about 500,000 users, that is, a quarter of the population, according to the World Bank. But the venture was undermined, as most traders continued to demand cash.

In early 2024, Israel worsened the economic pressure on Hamas by limiting the distribution of humanitarian aid, claiming that fighters systematically misappropriated supplies and resell them.

However, according to experts, it remains unclear whether the activities of the mesing cash are boosting Hamas, as some Israeli analysts argue.

“The war has made it extremely difficult to understand who is behind any economic activity in Gaza,” says Omar Sampan, head of Think Tank Palthink for Strategic Studies based in Gaza.

“It’s a dark place anymore. You don’t even know who brings cigarettes to Gaza, “he says. “It’s like a mafia.”

The same capital traders who run the metering networks are likely to sell basic foodstuffs, “Sampan points out. “They benefit by imposing these supplies,” he says.

When families run out of cash, they resort to humanitarian aid.