The compounded suffering caused by Gaza’s ‘manufactured’ cash crisis

Israel has imposed a strict blockade on Gaza since March leaving 2.2 million Palestinians in the strip with practically nothing. Food, medicine and water are extremely scarce with only trickles of aid entering every now and then. There’s barely anything to buy in the market. 

But in the middle of all this, there’s another crisis: cash. 

Banks have closed because of the war. ATMs have been destroyed. No new notes have been injected into the strip since 2023, with Israel suspending the Palestinian Monetary Authority from making any cash transfers to Gaza. The same old notes have been circulating in the strip, becoming so worn out that even vendors are rejecting them.

Instead, informal cash merchants are selling people physical banknotes in exchange for digital transfers, but with commission fees of about 50 per cent.

Meanwhile, the cost of even the most basic food staples, like flour and sugar, have skyrocketed to extortionate prices, further depleting the value of the currency. 

In this episode of Beyond the Headlines, host Nada AlTaher looks at the extreme difficulties of accessing money in the enclave and the compounded suffering caused by cash shortages.