DEIR AL-BALAH, Gaza Strip(National Times)- Cash is the lifeblood of the Gaza Strip\u2019s shattered economy, and like all other necessities in this war-torn territory \u2014 food, fuel, medicine \u2014 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 \u2014 and commissions on those transactions have soared to about 40%. \u201cThe people are crying blood because of this,\u201d said Ayman al-Dahdouh, a school director living in Gaza City. \u201cIt\u2019s suffocating us, starving us.\u201d At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families \u2014 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\u2019s punishing cash crunch has several root causes, experts say. To curtail Hamas\u2019 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\u2019s financial system prompted foreign businesses selling goods into the territory to demand cash payments. As Gaza\u2019s money supply dwindled and civilians\u2019 desperation mounted, cash brokers\u2019 commissions \u2014 around 5% at the start of the war \u2014 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. \u201cIf I need $60, I need to transfer $100,\u201d said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. \u201cThis 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.\u201d 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.<\/p>\n","protected":false},"excerpt":{"rendered":"
DEIR AL-BALAH, Gaza Strip(National Times)- Cash is the lifeblood of the Gaza Strip\u2019s shattered economy, and like all other necessities in this war-torn territory \u2014 food, fuel, medicine \u2014 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 […]<\/p>\n","protected":false},"author":2,"featured_media":107908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-107907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international","entry"],"yoast_head":"\n