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What caused Gaza’s cash crisis?
Gaza’s cash shortage is mainly due to Israel’s restrictions on cash entering the territory, aimed at limiting Hamas’s military capabilities. Additionally, wealthy families are withdrawing funds and fleeing, while the local economy relies heavily on the Israeli shekel, which is now frayed and difficult to accept. The combination of these factors has led to a severe cash crunch.
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How are people coping with the cash shortage?
With bank branches and ATMs inoperable, residents are turning to cash brokers who charge high commissions—up to 40%. People are also selling possessions and relying on damaged currency, which has led to the emergence of a new cash repair industry. These measures are temporary solutions amid ongoing economic collapse and conflict.
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What are the broader economic impacts of currency damage in Gaza?
Damaged currency and a lack of new notes have caused inflation to soar—by 230% in 2024—and unemployment to reach 80%. This economic instability makes everyday transactions difficult, worsens poverty, and hampers recovery efforts, deepening the humanitarian crisis in Gaza.
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How are international aid organizations responding?
Aid organizations are working to provide emergency cash assistance and support for economic stabilization. However, ongoing conflict and restrictions make it challenging to deliver aid effectively. Many are calling for increased international support to help Gaza rebuild its economy and restore access to basic financial services.
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What can be done to stabilize Gaza’s economy?
Stabilizing Gaza’s economy requires easing restrictions on cash flow, rebuilding banking infrastructure, and supporting local businesses. International cooperation and humanitarian aid are crucial to restoring confidence in the currency and creating sustainable economic recovery amid ongoing conflict.