Gaza Struggles to Rebuild Amid Financial Hardship

In Gaza, Palestinians face significant challenges in trying to rebuild their lives, struggling with a lack of basic necessities like food, clean water, medicine, and cash.

On Sunday, two bank branches reopened, only to be met with a wave of disappointed customers.

Ahmad Abu Fawl, 38, from Khan Yunis, expressed his frustration after visiting the Deir al-Balah branch, saying, “I wanted to withdraw my salary, but I couldn’t access it for a long time. I didn’t have the money.” He had recently renewed his credit card, but his finances were entirely depleted.

Taser Abu Shabak voiced his desperation: “What should I do? I can’t shop at the market, I can’t open an account. How will I eat and survive?”

After Hamas launched a sudden and aggressive attack on Israel two years ago, Gazans began to experience a financial crisis that has only intensified since. The banks operated for as long as they could, but halted services when the ceasefire broke down in March. According to a bank director, Sunday marked the first reopening since that time.

With existing Israeli banknotes stuck in closed circuits of commerce, many became so worn they were no longer usable. Recently, UN experts criticized Israel for what they described as a “financial stranglehold.” They noted that most banks and ATMs have been destroyed, and warned that the inflow of new currency remains blocked, contributing to rising inflation. “Digital payments are hindered by outages in electricity and communications,” they added.

Under pressure from the U.S. government, Israel and Hamas agreed to a ceasefire last week, resulting in the reopening of two Palestinian bank branches.

Although there was a line of customers, there was no cash available. A bank official remarked anonymously, “Gaza’s money is being spent.” The ongoing liquidity crisis means residents are relying on whatever cash they had before the conflict and using a banking app known as “friend-to-friend.”

For months, people have been patching up their damaged banknotes in local markets. While groceries can be bought through cash or bank transfers, frequent power and communication failures complicate transactions. Another anonymous bank official mentioned that many Gazans have lost a significant portion of their savings, with transfer fees occasionally reaching as high as 40%.

Cash Found in Tunnels

In February 2024, the Israeli military released footage showing cash stored in safes and bags within tunnels beneath Gaza. This was accompanied by documents indicating financial transfers from Iran to Hamas.

However, the reality for most Gazans remains starkly different. Many continue to find their pockets empty. Mahmud Nassar, 40, shared his hope: “I really thought that if the bank opened today, I would be able to withdraw money from my account. I was very happy and hopeful.” But he was met with disappointment, stating, “This means we are back to square one, having to withdraw our money through merchants who charge exorbitant fees.”

Nada Abu Amra, 33, from Deir Al Bala, also expressed despair. “Today my husband went to withdraw money and couldn’t find anything. The bank has reopened but there was no liquidity. People are exhausted. All they want is to withdraw 100 shekels, enough to buy food without paying fees.”