Gaza faces banking liquidity crisis and reliance on online payments

AI-summarized · Neutrality-checked

Gaza is currently experiencing a severe liquidity crisis characterized by a scarcity of functional cash and the degradation of physical banknotes, which many merchants have begun refusing as payment. The crisis was triggered by the destruction of over 50 bank branches and numerous ATMs during the ongoing war, alongside Israeli restrictions on the entry of new cash into the territory. Residents, including individuals like Firas Zaqloul and Israa Najm, now face significant barriers to commerce because lost or replacement identification documents often prevent them from accessing banking services or electronic wallets.

Consequences

The lack of accessible physical and digital currency is forcing residents into a precarious reliance on unstable internet-based transfers to complete basic transactions. This dependency complicates everyday trade and creates a persistent climate of economic uncertainty and social friction between buyers and sellers.

Sources

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