In broad daylight, in front of thousands of passersby, one of the owners of makeshift tents selling tea and coffee near the Nasser Medical Complex in Khan Younis, southern Gaza Strip, has hung a large sign that reads: “Cash withdrawals via banking app available here, 30 percent commission.”
Inside the tent, a man in his forties sits on a chair with a table in front of him, holding cash in 200- and 100-shekel bills. Around him, dozens of citizens, including women, gather to receive money after he deducts his high commission rate. This commission is a fee for transferring the total amount from their bank accounts to his own, in exchange for cash.
After a long wait, Samira Abu Moussa left the tent angry, examining the amount of money she received from the cash trader, who had taken 30 percent of her total as commission—more than a quarter of the amount—just to give her cash.
Abu Moussa had no choice but to withdraw her money through this trader, forced by the lack of available cash in Gaza due to the continued closure of all banks in the Strip and the occupation authorities’ refusal to allow cash to enter.
She needed the money to buy food for her children after running out of all funds a long time ago.
For months, Abu Moussa and her children were deprived of many of their basic needs, especially food, due to the cash shortage and the inability to access their salaries from closed banks in Gaza.
Alongside her, the Odeh family also suffered from the cash crisis, unable to withdraw their money due to bank closures. They were forced to borrow from relatives to meet their daily needs.
The Abu Moussa family failed to secure cash even through borrowing, making it impossible to buy essential goods or stock up on basics like flour.
The Business of Commission Traders
A number of commission traders in Gaza operate through fake social media accounts, promoting financial services that provide cash in exchange for using banking apps, and thus charging high commission rates that have reached up to 30 percent during the war.
The Palestinian banking sector includes 13 local and foreign banks—7 local banks, 5 Jordanian banks, and one Egyptian bank. The total assets of the Palestinian banking sector are estimated at around $22 billion.
The Palestinian Monetary Authority (PMA) announced that several bank branches in Gaza were destroyed by ongoing airstrikes, making it impossible to operate the remaining ones and halting cash withdrawals and deposits.
This has led, according to an official PMA statement, to an unprecedented cash crisis for citizens, worsened by the disruption of most ATMs—creating space for exploitation of people’s urgent need for cash.
The PMA confirmed it has received complaints about extortion by traders and unlicensed currency exchange shops, who use point-of-sale devices and bank transfers to impose commissions of up to 15 percent, delivering only the remaining balance in cash.
The PMA firmly rejected these practices, saying it is monitoring the accounts involved and will take strict action if violations are confirmed. However, it also acknowledged the limitations of its authority over entities not directly under its supervision.
Despite an official statement issued by the PMA in March of last year promising strong measures against those involved in the “cash trade,” the investigation found no concrete actions taken against them. Their shops continue to operate, and their bank accounts remain active to this day.
According to Palestinian Law No. 40 of 2022, which regulates and licenses money exchange activities, no person is allowed to practice currency exchange without a license from the PMA. The law requires applicants to submit a formal licensing request according to official guidelines, and licenses are granted only to companies officially registered under current corporate law.
A Compounded Crisis
Economic expert Dr. Nasser Abdel Karim confirmed that the cash liquidity crisis in the Gaza Strip began before the recent Israeli aggression but has significantly worsened since, due to the destruction of several bank branches and their inability to operate or provide citizens with cash. Speaking to Daraj, Abdel Karim said: “There is a troubling phenomenon in which some traders exploit the crisis for personal profit at the expense of people’s suffering, with no regard for the dire humanitarian and living conditions.”
He explained that residents of Gaza suffer not only from the cash shortage but also from a crisis of income and rising prices, making this a compounded and complex crisis that directly affects people’s ability to meet their basic needs and greatly diminishes their purchasing power.
Abdel Karim stressed the need for the Palestinian Monetary Authority (PMA) to pay serious attention to this crisis. While it may not have direct solutions, it must play an active role in addressing it through coordination with various parties.
He emphasized the need for a comprehensive national and community-level understanding that ensures at least a minimal level of resources and liquidity to confront the crisis and reduce its impact, warning that the absence of such a consensus creates space for opportunistic behavior that must be countered with a strong ethical stance.
He noted that the proposed solutions so far are extremely difficult and complex. For example, turning to electronic payment platforms may seem like an alternative, but this is unrealistic given the lack of infrastructure and capabilities among the majority of the poor population.
One possible solution, he suggested, is to reactivate ATMs at undamaged bank branches, provided bank staff can operate them safely. This could be a temporary option to provide liquidity.
He stressed that resolving the crisis in the near term appears unlikely without real community-level agreements involving civil society and tribal leaders to navigate this critical period with minimal losses.
Aman’s Recommendations
Wael Bahlousha, Director of the Gaza Regional Office of the Aman Coalition for Integrity and Accountability, emphasized that recommendations concerning the legislative and institutional framework governing the work of banks and money exchange companies require increased coordination between the PMA and governing bodies in Gaza. This coordination would help deter fraudsters and extortionists, protect citizens from exploitation, and create a safe environment for banks and money changers.
Speaking to Daraj, Bahlousha said: “Recommendations to improve the banking sector in Gaza also involve strengthening licensed money changers by providing them with more liquidity, ensuring they operate under the rules and instructions of the PMA.”
He stressed the need to enhance public accountability by forming coordination bodies during the war, including representatives from the PMA, tribal leaders, law enforcement in Gaza, and local committees. Their role would include launching advocacy campaigns to oppose citizen exploitation when withdrawing money or receiving remittances, and to raise awareness about protecting bank infrastructure, particularly ATMs.
He added that local community initiatives are needed to promote values of integrity, local governance, and accountability through neighborhood committees, chambers of commerce, and representatives from the private sector. These initiatives should pressure to end the exploitative cash trade, publish blacklists of those proven to be involved in such practices, and submit them to the relevant authorities for legal action after the war.
He also called for support for the banking infrastructure during the war, by supplying fuel and internet access to resume operations at as many branches as possible and increasing coordination between banks to facilitate liquidity.
Regarding recommendations to address worn-out currency and outdated shekel notes, Bahlousha stressed the need for greater pressure on the occupation to allow the entry of fresh currency and the replacement of damaged notes, through regional and global advocacy campaigns and the associations the PMA is part of. He also emphasized coordination with international institutions to strengthen their demands for the entry of cash.
Bahlousha noted the importance of reassuring citizens and traders that damaged or outdated shekel notes retain legal tender status and that the authority will replace them once restrictions on the movement of money to Gaza are lifted.
On the PMA’s role in protecting citizens from financial exploitation during the genocide war, Bahlousha emphasized the need to encourage PMA staff to resume their duties, calling it a national obligation under current conditions.
He added: “The PMA must also increase its field monitoring and conduct inspection visits to money changers and banks in Gaza’s southern governorates, empower its branches to follow up on complaints, and enforce oversight on money changers who violate regulations, taking legal action after the war. It should also cooperate with chambers of commerce to prevent traders from charging excessive commissions when selling cash.”
Bahlousha also stressed the need to enhance relationships between banks, electronic payment companies, and point-of-sale vendors to ease financial transactions for citizens. The PMA should activate its public education role to guide citizens toward digital tools, reduce reliance on cash, and promote digital payments as a safe alternative. It should also raise awareness about digital and financial rights.
Finally, regarding public accountability in Gaza’s banking sector under the war, Bahlousha emphasized that the PMA should publish encouraging material urging citizens to report cases of financial extortion or fraud during the war. The PMA must also work to resolve citizen complaints, organize and categorize them to ensure proper handling, and publish statistics on these complaints.
He also highlighted the role of non-police local and tribal committees in protecting bank branches and ATMs, and the need for commercial chambers to participate in holding exploitative traders accountable. Local authorities and police must continue managing ATM queues and enforcing scheduled access systems using designated cards.
