Overview
- Banks in Gaza began reopening on October 16 after the ceasefire, drawing long lines but offering only administrative and electronic services with no cash withdrawals.
- Israeli authorities halted transfers of banknotes following the October 2023 attacks, depriving a cash-reliant economy of physical currency.
- Merchants and informal exchangers are reportedly charging 20% to 40% to convert salaries into cash, with added fees even for small electronic purchases.
- Residents are repairing worn bills, resorting to barter, and scraping by on small sums that cover only basic staples at high prices.
- COGAT has provided no timeline for resuming banknote deliveries, bank infrastructure remains heavily damaged, and only limited Bank of Palestine branches have reopened without cash on hand.