Arabic version: سكان غزة يواجهون أزمة مالية مع ندرة النقود
Gaza City – In the bustling Remal neighborhood of Gaza City, residents are grappling with a severe cash flow crisis, forcing them to make difficult choices about how to purchase daily necessities. Samar Abu Harbied, a 45-year-old housewife, recently found herself without cash while shopping for groceries. She asked the grocer to allow her to buy on credit until her family could send money. “I have not touched a paper note for months,” she lamented, highlighting the struggles many face during the Muslim holy month of Ramadan.
According to Al Jazeera, the situation has worsened since the onset of the conflict in October 2023, which has left many Palestinians relying on worn-out currency or electronic payment systems. The destruction of an estimated 90 percent of bank branches and cash machines in the area has exacerbated the liquidity problem.
Many residents have turned to digital payment options, such as PalPay and Jawwal Pay, to navigate the cash shortage. However, access to these services is limited, as not all Palestinians receive bank-transferred salaries, and many lack smartphones. Additionally, the ongoing electricity crisis hampers their ability to keep devices charged.
Analysts indicate that the economic situation in Gaza has evolved from a liquidity crisis into a fragmented survival economy, heavily influenced by political constraints and the black market. The monetary system has been disrupted, with cash becoming a commodity whose value fluctuates due to scarcity. Ahmed Abu Qamar from the Palestinian Economists Association emphasized that this situation has led to social fragmentation, with approximately 95 percent of households in Gaza relying on aid.
As residents navigate these challenges, many express a preference for cash transactions, citing distrust in electronic payments. The ongoing conflict has allowed opportunistic middlemen to exploit the financial woes of Gaza’s residents, charging high commissions for cash transactions. With debts soaring and purchasing power declining, the economic landscape in Gaza remains dire.
