GAZA, (PIC)
As the Israeli assault on the Gaza Strip enters its nineteenth month, living conditions continue to worsen amid a total economic collapse. At the forefront of this collapse is a severe liquidity crisis that has overwhelmed residents’ daily lives, turning their routines into an exhausting struggle for survival. Exorbitant prices, cash shortages, and skyrocketing cash-out fees have made life nearly unbearable.
In a destroyed alleyway east of Gaza City, Haj Abu Mustafa stands outside his small shop, organizing the few remaining goods on its shelves, his eyes tired as he watches people enter.
He says in a low voice: “I used to sell through the app to ease the cash crisis for people, but unfortunately, we can now only buy from wholesalers with cash. So, I had to go back to cash-only sales.”
He adds: “People don’t have cash, and those who want to withdraw from the app pay a fortune in fees. The situation is unbearable. Even the suppliers now sell us at high prices with harsh conditions.”
Crippling fees
The fee for obtaining cash—locally known as “cash-out” or takyeesh—has become a daily burden that exhausts citizens.
Economic expert Mohammad Abu Jayyab explained in a special interview with the Palestinian Information Center: “We are facing an unprecedented liquidity crisis in the Strip due to the ongoing siege and Israel’s refusal to allow the entry of cash. There’s also a lack of any serious intervention from financial authorities in either the West Bank or Gaza to address the crisis.”
He continued: “Cash-out fees have reached irrational levels, ranging between 25% and 35% of the total amount. That means people are losing almost a third of their money just to get it in cash. These rates are an economic crime against the population.”
Abu Jayyab believes the biggest beneficiary of this situation is the black market, which thrives in the absence of banking oversight and the paralysis of official institutions. “With the collapse of the official monetary role, citizens have become prey to crisis traders who control liquidity and payment methods.”
Since the war began, Israeli forces have stopped the flow of cash into Gaza’s banks, most of which have closed their branches and now provide only limited services, mainly through banking apps.
“I lose just to live”
Mohammad, a government employee in Gaza, describes how life has become “a daily search for cash,” no less difficult than facing airstrikes.
He says: “I used to buy from shops via apps, but over time they started closing down, and I was forced to withdraw cash with high fees and buy from the market at higher prices.”
Umm Yazan, a mother of three, says: “I have no choice but to go around looking for stores that still sell through the app, but they’ve become rare. I can’t even give my kids an allowance anymore, because if you don’t have cash, you can’t even buy bread.”
Damaged currency and a complex crisis
Abu Jayyab points out that the problem has worsened with the spread of damaged currency, which merchants refuse to accept—further straining the situation. “The circulation of damaged bills has turned them into a burden, increasing pressure on usable cash and shrinking the amount of available liquidity far below actual needs.”
He added: “We need urgent solutions, the most important of which include pressuring the occupation to allow regular cash entry, actively supporting digital payment systems, raising public awareness about digital transformation, and serious intervention by the Palestinian Monetary Authority to restructure and regulate the market.”
Liquidity crisis or humanitarian collapse?
The liquidity crisis in Gaza is not merely an economic issue—it is a tragic reflection of an economic war of annihilation waged by Israel against more than two million people.
In the absence of fundamental solutions and an effective monetary authority, citizens are left with few options. Meanwhile, the black market expands, and daily life becomes a relentless battle for survival.
Experts stress that alleviating the crisis begins with reopening border crossings, allowing the flow of cash, enforcing real market regulations, expanding digital payment tools, and empowering citizens to adapt without being drained by every financial transaction.
