Deir el-Balah, Palestinian Territories — The Palestinians trying to rebuild their lives in the ruins of Gaza are short of many things: food, clean water, medicine — and cash.
On Sunday, two bank branches reopened, triggering an eager rush of clients. They were quickly disappointed.
“The Bank of Palestine reopened today, so I immediately went to the Deir al-Balah branch,” said Ahmad Abu Foul, 38, in Khan Yunis, southern Gaza.
“I went hoping to withdraw my salary, which I haven’t been able to access for a long time, but there was no money,” he said.
Abu Foul, who was driven from his home in northern Gaza by the fighting, was able to renew his credit card — but the coffers are dry.
“What should we do? We are unable to buy in the markets and unable to open our accounts. How will we eat and live?” said Taysir Abu Shabak.
Two years ago, after Hamas launched an unprecedented cross-border attack on Israel and triggered a brutal counterattack, Gazans started running out of cash.
Banks stayed open where they could but when a truce collapsed in March, they gave up. A bank director told AFP Sunday’s reopening was the first since then.
The existing Israeli notes became trapped in a closed circuit of small-scale commerce, and over the months some became so tattered as to be unusable.
Last month, UN experts complained about Israel’s “financial stranglehold”.
“Most banks and ATMs have been destroyed. Israel has blocked the inflow of new currency,” they said, warning of rampaging price inflation.
“Digital payments are impeded by electricity and telecommunications outages.”
Last week, under pressure from Washington, Israel and Hamas agreed a ceasefire — and on Sunday, two branches of the Bank of Palestine reopened.
Queues formed, but there was no cash to be had.
“The money in Gaza is worn out,” a Bank of Palestine official, speaking on condition of anonymity, told AFP.
“People are only using the cash they had before the war, alongside a banking app called ‘friend-to-friend transfers’ because there is no liquidity.”
For months, banknotes, sometimes in tatters, have been repaired in markets.
Food is purchased with cash or through bank transfers, which are often complicated due to power and communication outages.
According to another bank official, also speaking anonymously, Gazans have lost a lot of savings and commissions on transfers can reach 40 percent.
Cash stacked in tunnels
In February 2024, the Israeli army released videos showing safes and bags holding large sums in Israeli shekels, US dollars and Jordanian dinars.
The military said they were found in tunnels under Gaza, along with documents it said proved there had been cash transfers from Iran to Hamas.
But most cash-strapped Gazans still have empty pockets.
“I really thought that once the bank opened today, I would be able to withdraw money from my account. I was so happy and hopeful,” said Mahmud Nassar, 40.
“But when I got there, I found no cash,” he told AFP.
“It means we’re back to square one — having to withdraw money through merchants who charge outrageous fees, draining us completely.”
Nada Abu Amra, 33, from Deir al-Balah, was close to despair.
“My husband went to withdraw money today, but he found none. The bank reopened, yes, but without any liquidity,” she said.
“People are exhausted — all they want is to withdraw just 100 shekels without paying commission, just enough to buy food.”
