Financial Crisis: Another Fight by the Palestinian People for Survival

Published at: 05/09/2025 04:49 PM

The genocide of Israel against Palestine not only refers to the daily and permanent murder of the civilian people, but also the cash or money in circulation, which was once an instrument of common exchange, has now been transformed into a resource as scarce as drinking water or food.

In addition to the genocidal violence of Zionism against Palestine, there is material disaster in the face of the premeditated destruction of its economy. The money crisis has further aggravated the daily situation faced by its inhabitants with systematic capitalist violence.

In an editorial published on the Euronews portal in July, he explained that “people in Gaza pay up to 40% commission to receive cash, the economy is profoundly affected by cash shortages, inflation, unemployment, speculation and intermediaries aggravate daily life so critically that almost all cash machines are inoperative, forcing the population to depend on cash brokers who charge very high commissions for each trade.”

According to experts, the shortage of cash in Gaza has several causes: “a) To reduce Hamas' ability to buy weapons and pay its fighters, b) Israel eliminated the flow of cash into Gaza at the beginning of the war and c) the growing fear of the financial system breaking down, made foreign companies that sold products in the territory demand cash payments”.

The lack of cash combined with an economy hit by genocide, inflation, extreme unemployment and the decline in savings, provides a disappointing picture. The Euronews editorial added that “it is estimated that in 2024 unemployment was 80% and that it is currently even higher, but there are no updated figures. Palestinian families have sold their possessions to buy the basics that can be found for food and drinking water.”

In the same way, the cost of the products has multiplied: a kilo of flour is sold between $80 and $100 when its price is around $2. Fuel reaches extreme prices of around $25 per liter at the lowest price available in cash.

The banknotes in circulation (mainly Israeli) are in poor condition or deteriorated. This further complicates transactions, as many merchants and suppliers only accept new banknotes; this has generated a “banknote repair” market with a cost of between $3 and $10 for each repaired ticket. With banks closed and automated teller machines obsolete, Palestinians today rely on an informal network of cash brokers who apply abusive fees of up to delivering ill-treated, often useless bills, which they then have to pay to fix them.

Cash brokers have great power and operate without regulation, imposing high commissions. In addition, the use of electronic transfers (when there is electricity and internet) only allows you to recover a fraction of the money sent, for example, $100 is transferred and the person receives $60 in cash.

Social impact

When cash runs out, families depend on humanitarian aid, which is also insufficient and at best, when not bombed, causes long lines to get food.

“It's suffocating us, it 's starving us to death,” summarizes Ayman al-Dahdouh, director of a school in Gaza. Like him, thousands of people face a vicious cycle: no access to their bank accounts, no flow of new notes from Israel, and the cash in circulation is so deteriorated that even merchants refuse to accept it.

At the same time, brokers (men with access to physical ticket reservations) have become indispensable and expensive intermediaries. “How are we going to live? Our life is very difficult; when dealing with merchants, 100 shekels (approximately $30) are not enough to buy anything, and they hardly accept the bills that circulate: either they say it's broken, stuck, damaged, or they bring another one. There is no money or cash or exchange,” said Khitam Hamdan, also a Palestinian resident.

Jehad al-Sosi, a resident of Gaza City, also described in an interview with the AP agency that “before, merchants opposed the 10 shekels and stopped using them, and now they reject the 20 shekels and the 50 shekels. As for the commission on the products, it has reached 42%, which means that you get half the salary and the other half is theirs. Life is unbearable, in all its forms it's unbearable,” he said.

In the same way, on July 15, the news portal Atalayar published an article written by journalist Dayriby Abreu, called “ The financial collapse of Gaza leaves it at the mercy of the black market”, where the director of Pal-Think for Strategic Studies, Omar Shaban, has stated that “the war makes it difficult to determine the functioning of the economic activity of the strip, stating that it is currently operating as a kind of mafia and at exorbitant rates compared to the current situation. In the absence of official banking services, the inhabitants are subject to a double situation of instability, finding themselves immersed in an environment of armed violence and extortion by informal media that profit from the feeling of desperation and precariousness.”

Without financial institutions or printing new banknotes, Gaza survives with informal networks of brokers who charge up to 40% to deliver money. The scarcity of useful notes, inflation, unemployment and desperation turn every transaction into a fight for survival.

AMELYREN BASABE/Mazo News Team