Gaza, without banks or funds: The liquidity crisis leads to the invading economy to the brink of the abyss
propagandaA serious liquidity crisis Gaza’s economy pushes the abyss. The Palestinian Monetary Authority (PMA) has warned of the worsening situation since the beginning of the war on October 7, 2023 due to the destruction of banks since the money from entering, causing a Total banking system paralysis.
The Palestinian monetary authority confirmed in his statements that Israeli bombings Constant caused Destruction of many bank branchesWhile the remaining few cannot open due to insecurity and energy cuts. most ATMs outside the serviceWhich leads to the exacerbation of the liquidity crisis between citizens and merchants.
The crisis has exacerbated Israel’s refusal to provide money in Gaza, despite Palestinian and international calls. most Bank branches have been destroyed Or were damaged in the bombings, and some were attacked, which led to paralysis of clouds and deposits.
As a result, Cash circulatory decreased In the market, given that citizens and merchants have turned to storing money instead of rotating, which changed the regular monetary and increased Population suffering In the middle of a dangerous shortage of liquidity.
A complete collapse of the banking system in Gaza: There is only one bank in the service
The banking sector remained in Gaza The war was completely destroyed. All bank branches stopped working, leaving only a branch of the local bank in the center of the tape, which works in a very limited way to activate frozen or inactive accounts, Without providing cash withdrawal services or deposits.
Before the war, it was Gaza 56 Bank branch and 91 ATMs Automatic affiliation with 13 local and foreign banks (seven Palestinians, five Jordan, and one Egyptian). Nowadays, one ATM does not work all over the sector, as the financial infrastructure has been systematically destroyed.
Total assets of the Palestinian banking sector to some 22,000 million dollars (19,833 million euros), but Gaza was almost isolated from this system due to the interruption of all financing and monetary channels.
Electronic payment for lack of liquidity and tickets
Looking at the unprecedented monetary crisis in the Gaza Strip, thousands of citizens were forced Resorting to banking requests and electronic portfolios To make its daily transactions, after the tickets were worn and rare due to the ongoing war.
Ahmed Allah announced: “The electronic wallet has become our only resource Buy basic itemsEspecially in the face of the deterioration of paper currencies that cannot be replaced. “But these solutions are still limited, as not all stores accept electronic payments, and prices are usually much higher.”
The difficult forced change towards the digital economy
As an emergency measure, the Palestinian Monetary Authority (PMA) was launched Immediate payments and transfers Between banks and payment services companies in an attempt to alleviate the suffering of citizens who cannot reach their money yet 98 % bank infrastructure destruction Written by Gaza.
Despite these initiatives, electronic transactions cannot be replaced by a collapsed monetary system, such as only25 % of stores accept electronic payments. In addition, the prices of products in these stores Between 30 % and 50 % more expensive From regular markets. 72 % of families do not have active bank accounts electronically.
This forced change towards the digital economy reveals the danger of the financial crisis in Gaza, as economic life has become a dilemma between incomplete solutions and Daily suffering escalationIn light of the continuous blockade to the currency entrance and effective.
Exchange crisis: commissions up to 40 %
The cash crisis in Gaza has made change of foreign currencies in Daily nightmare For citizens and merchants, which They lose up to 40 % of their money valueAccording to the economists, Ahmed Abu Qamr. The roots of the crisis are due to Israel’s refusal Enter the money from the beginning of the warIn addition to the departure of large cash amounts during the first months of the war and the interruption of the Paris Economic Protocol, which Organized cash movement.
Gazaties face serious problems in the deterioration of the currency value Extension of the black marketAs the worn tickets became unacceptable in daily transactions, which caused Unprecedented and Loss of the purchasing value of Shekel. In an attempt to alleviate the crisis, Abu Qamar suggests urgent solutions such as international pressure to force Israel to enter money, Promote financial inclusion By electronic transfers and finding a mechanism to replace the deteriorating currency.
propagandaHowever, these solutions face great obstacles in front of The collapse of the banking systemWith 98 % of the closed branches, the lack of price controls and the spread of the black market that benefit from the crisis. While Gazaties tries to keep the small value they enjoy in their money, The suffering increases day by day In the economy, the full and full cash shortfall and the increase in prices, which leaves the population before an unprecedented challenge To meet your basic needs.
Liquidity crisis: Daily nightmare
Thus, the dentist, Hazem Abu Mawlaak, prescribes the situation: “In the clinic that forced us to completely change Bank applications and internal transfersTo escape from the crime‘, But it is not the perfect solution. He explains that medical supply companies reject negotiation electronically, forcing us to pay in cash at prices above 30 % and 50 %, which in turn reflects the cost of treatment for citizens.
For his part, Bara’s pharmacist reveals a similar position: “We face Great difficulties in withdrawing moneyWith a commission of up to 45 %, which forces us to process electronic applications. He indicates that this position may cause Increase the prices of medicinesAt a time when the health sector is already suffering Israeli ban on medical supplies Since last March, after Israel resumed its military attacks against the Gaza Strip.
Mohamed Mahdi, a seller of electronic products, tells how he was forced to move to electronic transactions: “Getting the lowest amount of money has become almost impossible.” Muhammad Tayya, the food seller, describes, Electronic transfers such as “dead funds” It cannot be fully used due to the difficulty of converting it into criticism.
propagandaOccupational economy, parallel market
In an attempt to track the threads of the suffocating liquidity crisis, “Euronews” struggled to contact many changes in the Gaza Strip, but all of them refused to make data on various issues.
“The exchange market in Gaza is currently operating A type of submerged economyWhere most operations are performed informally for fear of persecution, with networks specialized in providing a strong currency at astronomical prices. “
This silence reveals part of The complexities of the crisisIn any currency exchanges They have become a parallel market It is controlled by the invisible forces that refuse to reveal their secrets, despite the daily suffering of the Gaza population.
