Gaza cash famine forces reliance on unreliable online payments
This digest was compiled by AI from multiple sources — links to the originals are below.
Palestinians in Gaza face an acute shortage of usable cash, known locally as a 'cash famine', after Israel restricted cash entry and destroyed banking infrastructure. Residents like Firas Zaqloul and Israa Najm struggle to pay for goods as merchants reject worn banknotes and digital transfers remain unreliable.
Key Facts
- Israel has destroyed more than 50 bank branches across Gaza and dozens of cash machines, according to the Palestine Monetary Authority.
- The October 2025 ceasefire allowed banks to reopen some branches, but services remained limited to administrative transactions without new liquidity.
- Palestinians using replacement identification documents issued after 2023 find it difficult to open new bank accounts, excluding thousands from electronic banking.
- Firas Zaqloul's home was destroyed during the war, burying his Palestinian identity card and preventing him from opening a bank account or electronic wallet.
- Israa Najm waited two hours in a clothing shop for a mobile transfer confirmation before the shopkeeper would release her purchase.
Cash Famine
Since the war began on October 7, 2023, Israel has severely restricted the entry of cash into Gaza, while its military campaign has devastated much of the territory's banking infrastructure. The result is an economy in which people may technically have money but struggle to access it, or find someone willing to accept the notes in their possession. According to the Palestine Monetary Authority, Israeli attacks have destroyed more than 50 bank branches across Gaza, as well as dozens of cash machines. Large quantities of cash were also trapped inside the vaults of damaged or destroyed banks.
Banking Access
Even after the October 2025 ceasefire allowed banks to reopen some branches, services remained limited largely to administrative transactions, without providing badly needed new liquidity. Palestinians in Gaza say they find it difficult to open new accounts for anyone using replacement identification documents issued after 2023. This deprives thousands of people unable to access the electronic banking system at a time when digital payments have become increasingly essential.
Daily Struggles
Firas Zaqloul's home was destroyed during Israel's war on Gaza, burying his Palestinian identity card beneath the rubble. Without it, he has been unable to open a bank account or electronic wallet, leaving him dependent on increasingly scarce and badly-worn banknotes that many merchants refuse to take. In a clothing shop in Gaza City's Sheikh Radwan neighbourhood, 23-year-old student Israa Najm waited two hours for a notification to appear on the shopkeeper's phone. She said the shopkeeper would not let her leave with the abaya she wanted to buy unless he saw confirmation that her mother's transfer had arrived.
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Gaza cash famine forces reliance on unreliable online payments
