Archive · 31 Oct 2025
Gaza Banks Reopen Amid Severe Cash Shortage, Economy Nears Barter
Imagine a town where the stores are open, but there's no money to buy anything.
That's what's happening in Gaza right now.
The banks have started opening again after a ceasefire, but there are no actual bills or coins inside.
People need cash for almost everything, like buying food or paying for rides.
Because there's no cash, people have to use complicated electronic apps, or even trade things directly, like swapping cigarettes for bread.
Some people try to get cash from 'money changers,' but they charge a lot of extra money.
Others are trying to fix old, ripped money to earn a little bit.
Even though things are supposed to be getting better, it's very hard for people to get the money they need to live.
The people in charge of letting things into Gaza haven't said when real money will be available again.
Gaza's banks reopened on October 16 after a ceasefire but lack physical cash, paralyzing the economy.
Israel is blocking the transfer of banknotes into Gaza, making basic transactions difficult.
Residents face long queues at banks for limited electronic transactions or small cash withdrawals (400-500 shekels).
The severe cash shortage is forcing a return to barter systems, with items like cigarettes traded for bread.
Black market money changers are charging exorbitant fees (20-40%) for cash, while some individuals mend torn banknotes to earn a meager income.
- Who
- Residents of Gaza, Wael Abu Fares (resident), Mohammad Abu Jayyab (economist), Iman al-Ja’bari (resident), Manal al-Saidi (banknote mender), COGAT (Israeli military body)
- What
- Gaza's banks have reopened after a ceasefire, but without physical currency, leading to economic paralysis, reliance on electronic transactions, black market money changers, and a slide into barter. Israel is blocking the transfer of banknotes into Gaza.
- When
- Banks reopened on October 16; the article is written more than two weeks after a ceasefire was agreed.
- Where
- Gaza Strip (Gaza City, Rafah)
- Why
- Israel is blocking the transfer of physical currency into Gaza as part of wider restrictions following Hamas's October 2023 attacks, leading to a severe cash shortage and economic crisis.
Palestinians in Gaza
Israel
Cash Transfer into Gaza
Palestinians in Gaza
Residents and economists report a severe lack of physical currency, with banks operating largely on electronic business and people struggling to access even small amounts of cash, leading to economic hardship and reliance on barter.
Israel
COGAT, the Israeli military body overseeing aid, has not commented on when cash transfers will resume, and Israel continues to block the transfer of banknotes as part of wider restrictions.
Economic Recovery Post-Ceasefire
Palestinians in Gaza
Despite the ceasefire, the lack of cash and high prices have left the economy paralyzed, with many unable to afford basic necessities and resorting to barter or exorbitant fees for cash.
Israel
The article does not present a direct opposing view from Israel on the economic recovery itself, focusing instead on the policy of blocking cash transfers.
- Banks Reopened
- October 16
- Ceasefire Agreement
- Over two weeks prior to article date
- Cash Withdrawal Limit (per person)
- 400-500 shekels ($123-$153)
- Black Market Money Changer Fees
- 20-40%
- Daily Earnings of Banknote Mender
- 20-30 shekels
Sources
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