As guns fall silent after two years of devastating war, Gaza’s residents are facing a new kind of hardship there is no cash to spend. Banks reopened on October 16 after the ceasefire, but most branches have no liquidity. Many were damaged or destroyed during Israeli airstrikes and can now only handle electronic transactions. Long queues form daily, yet most people return home empty-handed, unable to withdraw even a fraction of their savings.
Why It Matters
Cash is essential for survival in Gaza, where most daily transactions from buying food to paying bills depend on physical currency. Israel has blocked the transfer of banknotes since the Hamas-led attacks in October 2023, deepening economic paralysis. With prices soaring and electronic payments incurring extra fees, Gazans are struggling to afford basic goods. Those desperate for cash are forced to pay private traders commissions as high as 40 percent to withdraw salaries.
Families who have already lost homes, jobs, and loved ones now face an economic standstill. Local banks are functioning without liquidity, while Israel’s COGAT, which controls goods entering Gaza, has not indicated when cash shipments might resume. The U.S. peace plan introduced by President Donald Trump made no mention of banking access or economic relief, leaving Gaza’s reconstruction efforts uncertain.
What’s Next
With no clear path to restoring cash flows or rebuilding financial infrastructure, Gaza risks sliding into deeper economic chaos. Many residents have begun bartering or repairing damaged banknotes to survive, while others rely on costly mobile transfers for everyday purchases. Despite the fragile calm, the lack of money threatens to unravel whatever peace the ceasefire brought, leaving Gazans trapped between recovery and despair.
With information from Reuters.
