In the Gaza Strip, where war has shattered daily life and decimated infrastructure, cash has become a rare and vital commodity — and civilians are paying a devastating price to access it.

With banks and ATMs non-functional across much of the territory, a black market of unregulated cash brokers has emerged, charging up to 40% commission just to provide physical money.

“The people are crying blood because of this,” said Ayman al-Dahdouh, a school director in Gaza City. “It’s suffocating us, starving us.”

Desperation Meets Exploitation

As economic collapse deepens, Palestinians now transfer money electronically to cash brokers and receive just a fraction of its value in worn Israeli shekels. In many cases, $100 yields only $60 in hand — or less.

The crisis has worsened due to:

  • Inflation surging 230% in 2024 (World Bank)

  • 80%+ unemployment

  • The Israeli blockade on currency shipments to Gaza

  • Merchants refusing damaged banknotes

Bills Too Fragile To Use

With new money unavailable, worn-out bills dominate. Merchants and suppliers reject damaged currency, and a cottage industry of “money repairers” now charges to tape up bills.

Even then, repaired notes are sometimes refused. “So the worth of your $50 is zero in the end,” said Gaza resident Shahid Ajjour.

A System Without Oversight

According to financial experts, the war has crippled regulation and blurred the lines between commerce and corruption. Many suspect that wealthy traders and former elites now run the cash brokerage networks — and may be profiting from humanitarian chaos.

“It’s a dark place now,” said Omar Shabaan of Gaza-based Palthink. “You don’t know who is behind anything.”

Food, Medicine, Transport — All Require Cash

Despite attempts to roll out digital payment systems, most daily transactions in Gaza still depend on physical currency. And as families run out of savings, they are pushed into aid lines — fighting for flour, sugar, and canned beans.

“This is the only way I can feed my family,” said Mohammed al-Farra, now displaced from Khan Younis.