Cash-strapped Gazans left disappointed as first banks reopen

In the war-torn Gaza Strip, the reopening of two bank branches on Sunday brought a glimmer of hope to cash-strapped residents, only to leave them disillusioned once again. Despite the long-awaited resumption of banking services, the branches lacked the necessary liquidity to meet the demands of eager customers. Ahmad Abu Foul, a 38-year-old resident of Khan Yunis, expressed his frustration after failing to withdraw his salary, a situation emblematic of the broader financial crisis gripping the region. The Bank of Palestine’s reopening marked the first such event since March, when a truce collapsed, but the absence of usable currency has rendered the move largely symbolic. Over the past two years, since Hamas’s cross-border attack on Israel and the subsequent military response, Gaza’s financial system has been in disarray. Israeli shekels, the primary currency, have become trapped in a closed loop of small-scale commerce, with many notes deteriorating to the point of being unusable. UN experts have criticized Israel’s ‘financial stranglehold’ on Gaza, citing the destruction of banks and ATMs, the blockade on new currency inflows, and the disruption of digital payments due to frequent power and communication outages. While a recent ceasefire brokered under U.S. pressure has provided a temporary reprieve, the lack of liquidity continues to exacerbate the humanitarian crisis. Residents like Taysir Abu Shabak and Mahmud Nassar lament the exorbitant fees charged by merchants for cash withdrawals, further draining their already meager resources. Nada Abu Amra, a 33-year-old from Deir al-Balah, voiced the collective exhaustion of Gazans, who simply seek access to enough funds to purchase basic necessities. The discovery of large sums of cash in tunnels beneath Gaza, allegedly linked to Iran’s support for Hamas, has done little to alleviate the plight of ordinary citizens. As the region grapples with rampant inflation and a crumbling financial infrastructure, the reopening of banks without liquidity underscores the enduring challenges faced by Gaza’s population.