Palestinian Authority employee Mohammed Odeh, a resident of Gaza, was forced to pay 23 percent of his salary—which amounts to 2,700 shekels ($750)—to a money exchanger in order to receive his wages after transferring them from his bank account to the exchanger’s account.

Odeh is one of thousands of Gazans subjected to exploitation by money exchangers, brokers, and traders in exchange for accessing cash, due to the near-total shutdown of local banks, most of which were destroyed by Israeli airstrikes during the war.

With local banks ceasing financial services and preventing residents from withdrawing their salaries and savings due to Israeli attacks, cash traders have emerged as the only alternative for obtaining money in Gaza.

An investigation by Daraj revealed that money exchangers, brokers, and traders obtain cash from merchants by purchasing it from them at a commission of 2 percent per 100 shekels ($30), equivalent to just 2 shekels per transaction.

These commission-based traders in Gaza advertise their services through fake social media accounts, offering cash liquidity through banking apps, with commission rates reaching 30 percent of the requested amount during the war.

The Palestinian Monetary Authority (PMA), the central bank, confirmed that several bank branches and headquarters were destroyed by continuous airstrikes across Gaza, making it impossible to reopen the remaining branches for withdrawals and deposits in all governorates.

According to an official statement from the PMA, the closure of banks due to airstrikes has led to an unprecedented liquidity crisis, worsening with most ATMs going out of service.

The PMA also confirmed that citizens have been subjected to extortion by traders and unlicensed money exchange shops, which exploit direct debit devices at points of sale or banking app transfers to charge up to 15 percent commission on any amount withdrawn using bank cards or wire transfers before handing over the remaining cash.

The PMA condemned these exploitative practices, asserting that it is monitoring such transactions and will take punitive action against violators once it confirms misuse of personal accounts. However, it also expressed regret over its limited ability to take direct action against those operating outside its jurisdiction.

Despite the PMA’s March 2024 statement vowing to take strict measures against illicit cash traders, the investigation found no evidence of punitive actions, as these traders continue to operate openly with their bank accounts still active a full year after the official statement.

According to Palestinian Law No. 40 of 2022, regulating the licensing and oversight of money exchange services, no individual is permitted to operate as a money exchanger without a license from the PMA. The law requires all individuals wishing to practice this profession to submit a licensing request under the relevant regulations, and licenses are granted only to registered companies in accordance with corporate law.

Theft and Extortion

Odeh says: “During the war, the prices of essential goods like flour, oil, and sugar doubled, and a family of five needed $2,000 per month just to meet their food needs—if these items were even available in the markets.”

After the Israeli army entered Khan Younis in December 2025, Odeh stopped using ATMs from banks operating under the Palestinian Monetary Authority and began relying on cash traders to receive his salary.

Odeh is extorted every time he collects his salary, having been forced to pay up to 30 percent in commission.

He explains: “I transfer my monthly salary to the bank account of a commission trader, and in return, he hands it to me in cash—after deducting his cut.”

In western Khan Younis, one money exchanger has put up a striking sign that reads in bold letters: “We have cash available for a commission.”

Dozens of people line up in front of a small stall set up in the middle of the road by a money exchanger, where they receive cash—after a portion of their funds is deducted.

Those standing in line are desperate to access their salaries and savings, despite the high commission fees, as no banks have resumed normal operations, even after the war ended.

Among those waiting is a widow of a Palestinian Authority employee, who has been standing there since early morning, hoping to receive her salary from one of the money exchangers.

Naha Al-Masri, 40, says: “Every month, I come to this place and wait two to three days for my turn to receive my salary, which is transferred to the exchanger’s account—where a commission of up to 30 percent is deducted.”

Al-Masri told Daraj that even after the war ended, she still collects her late husband’s salary through these exchangers. However, the commission rate has now dropped to 18 percent, though she considers it still high and financially draining.

She describes these excessive commissions as theft and extortion, questioning why Gaza’s authorities have not taken action against these money exchangers.

For his part, Hassan Ali, a commission-based money exchanger, justifies his work, claiming he is “providing a great service” to people in the absence of banks and liquidity.

Ali told Daraj: “The process of selling cash goes through several stages. The exchanger is not the only one profiting—first, we buy cash from sellers, paying them a commission based on supply and demand. Then, we sell it to those who need it after verifying their transfer into my bank account.”

He insists that he continues to operate openly in a well-known area of Gaza, even after the war ended, and has not received any warnings or directives from the Palestinian Monetary Authority or any other official entity to stop his activities.