SUBSCRIBE & SAVE Less than $3 per week View Profile The Explainer Talking Points The Week Recommends Newsletters From the Magazine The Week Junior Food & Drink Personal Finance All Categories Newsletter sign up under the radar Gaza is running out of cash Palestinians pay the price as black market springs up around banknotes and coins Newsletter sign up Repairing old and worn out banknotes in Gaza has become a new trade for Palestinians as the enclave runs out of hard currency (Image credit: Illustration by Julia Wytrazek / Getty Images) Elizabeth Carr-Ellis, The Week UK 31 March 2025 Gaza's ongoing humanitarian crisis has created yet another problem for residents – a desperate shortage of cash. With the Israeli siege blocking supplies of fresh currency into the territory, Palestinians are having to mend their "tattered bills and rusted coins" to buy essential goods, said the Financial Times. Gaza's last working ATM closed in late 2024, while most of its banks have either shut due to security fears or been destroyed by Israeli air strikes. Due to the lack of new cash coming into the enclave, much of the remaining currency has ended up in the hands of "powerful wholesalers" trading in goods from Egypt and Israel. They use bank transfers to pay for the imports, but insist buyers pay cash for the goods. Subscribe to The Week Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives. SUBSCRIBE & SAVE Sign up for The Week's Free Newsletters From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox. From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox. Charity workers and aid agencies hit It has led to a "lucrative" sideline for black market money brokers, who buy cash from the traders and then sell it for "exorbitant" fees to desperate Gazans, receiving payment via electronic bank transfers. Those charges have increased following Israel's renewed bombardment of Gaza, said the FT. Traders have doubled their asking price from 15% to 30%. "A customer will transfer me Shk1,000 and only walk away with Shk700 in cash," one told the newspaper. He had bought the currency from a trader higher up the ladder at a 24-25% mark-up. Known as "exchangers", these men are becoming a way of life in Gaza, said CBC News. One, named Saadi Al-Ashqar, said that cashflow was being controlled by "top businessmen" and that the only way to get money in and out of the enclave was through a digital banking app tied to the Bank of Palestine. "Those who control this situation are unfortunately taking advantage of the situation that we and the citizens are living in," he said. It is not only Gazans who are being hit; employees at charities and humanitarian agencies are also having to use traders to receive their wages. Locally based workers at the charity War Child are having to transfer their salary to a trader, who then takes a 40% cut before giving them the rest of their wages in cash, according to The New Arab. The charity has started paying them an extra allowance to make up some of the shortfall. Gaza's cash repair shops Traders' charges can also vary depending on the quality of the banknote being used. The lack of fresh currency means existing notes are suffering from "wear and tear". Fresher-looking notes merit a higher fee as they are more likely to be accepted by vendors, most of whom refuse to accept worn out bank notes. Several Gazans have turned the situation to their advantage, restoring old, ripped notes for a price. Former jeweller Mohammad Al-Ashqar repairs around 200 a day, said the Los Angeles Times, carefully taking off any old tape holding the note together, removing the residue and then applying transparent glue so the note doesn't break when folded. "People have been passing around the same bills for more than a year now," said Al-Ashqar. "Of course they’re tattered and fragile." It's turned into such a success that he has trained his three former jewellery assistants to repair notes, charging two to three shekels – "the equivalent of 55-82 cents" – per repair, depending on the quality of the note. "A lot of people come back to thank me because I helped them fix their banknotes," he said. Not everyone can repair or replace their cash, however, including some of the exchangers themselves. Money broker Abdallah Al-Mzeiny has found himself a victim of vendors' refusal to accept 10-shekel coins for fear they are counterfeit. He has more than 10,000 shekels, some $2,700, in the coins. Nevertheless, he will continue his trading. "It’s a way for anyone with cash to earn money," he said. Explore More Israel and Palestine Sign up for Today's Best Articles in your inbox A free daily email with the biggest news stories of the day – and the best features from TheWeek.com Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. Elizabeth Carr-Ellis, The Week UK Social Links Navigation Elizabeth Carr-Ellis is a freelance journalist and was previously the UK website's Production Editor. She has also held senior roles at The Scotsman, Sunday Herald and Hello!. As well as her writing, she is the creator and co-founder of the Pausitivity #KnowYourMenopause campaign and has appeared on national and international media discussing women's healthcare. Law firms: Caving to White House pressure Trump targets major law firms tied to his past investigations ByThe Week US Published 31 March 25 Venezuelan deportees: Locked up for tattoos? A former pro soccer player was deported after U.S. authorities claimed his tattoo proved he belonged to a Venezuelan gang ByThe Week US Published 31 March 25 Saving the post office The U.S. Postal Service is facing mounting losses and growing calls for privatization. Can it survive? ByThe Week US Published 31 March 25 You might also like Israel detains director after West Bank settler clash The director of Oscar-winning documentary 'No Other Land' was arrested and beaten ByRafi Schwartz, The Week US Published 26 March 25 Israel strikes Gaza, breaking ceasefire 326 Palestinians were killed in the first major attack since Netanyahu's government signed a ceasefire agreement with Hamas ByPeter Weber, The Week US Published 18 March 25 Arab leaders embrace Egypt's Gaza rebuilding plan The $53 billion proposal would rebuild Gaza without displacing Palestinian residents ByPeter Weber, The Week US Published 5 March 25 Mountains of garbage are creating more hazards in Gaza under the radar Gaza was already creating 1,700 tons of waste daily prior to the war ByJustin Klawans, The Week US Published 3 March 25 Why is Netanyahu pushing into the West Bank now? TODAY'S BIG QUESTION Israeli tanks have entered some Palestinian cities for the first time in decades. What's behind this latest assault on the occupied territory, and where could it lead if left unchecked? ByRafi Schwartz, The Week US Published 27 February 25 The optics of Hamas' hostage releases In The Spotlight 'Release certificates' and 'gift bags' part of 'strategic choreography' of prisoner swaps ByChas Newkey-Burden, The Week UK Published 17 February 25 Hamas pauses Gaza hostage release, upending ceasefire Hamas postponed the next scheduled hostage release 'until further notice,' accusing Israel of breaking the terms of their ceasefire deal ByPeter Weber, The Week US Published 11 February 25 'Riviera of the Middle East': what does Trump's Gaza plan mean for the region? Today's Big Question Suggestion that the US take over and redevelop the war-torn region, and displace its Palestinian residents, has been condemned by Arab allies but welcomed by Israel ByHarriet Marsden, The Week UK Published 5 February 25 View More ▸ Contact Future's experts Terms and Conditions Privacy Policy Cookie Policy Advertise With Us The Week is part of Future US Inc, an international media group and leading digital publisher. Visit our corporate site. Future US, Inc. Full 7th Floor, 130 West 42nd Street