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The Star
5 days ago
- Business
- The Star
When cash isn't king
CASH is the lifeblood of Gaza's shattered economy – and, like food, fuel and medicine, it is in desperately short supply. With nearly every bank branch and ATM inoperable, residents have become reliant on a growing network of powerful, unregulated cash brokers. Their commissions have soared to as much as 40%. 'The people are crying blood because of this,' said Ayman al-Dahdouh, a school director in Gaza City. 'It's suffocating us, starving us.' In a territory reeling from inflation, unemployment and dwindling savings, the cash crunch has made daily survival even more precarious. Some families are selling off possessions just to afford essentials like flour and sugar. And even the available cash is losing value – not in exchange rate, but in physical condition. Most Palestinians in Gaza use the Israeli shekel, but Israel is no longer sending in newly printed notes. Merchants increasingly reject frayed or damaged bills. Israel banned cash deliveries into Gaza early in the war in a bid to weaken Hamas. Around the same time, many wealthy families fled the enclave, emptying their accounts. A Palestinian man repairing worn-out Israeli currency. — AP Meanwhile, foreign businesses began demanding cash up front for goods, fearing Gaza's financial instability. As the money supply shrank, cash brokers – once charging a modest 5% – began demanding far more. Today, transferring the equivalent of US$100 might get you only US$60 in hand. 'If I need US$60, I have to transfer US$100,' said Mohammed Basheer al-Farra, who was displaced from Khan Yunis. 'We lose nearly half our money just to be able to spend it.' Brokers operate in the open, advertising services in shops and online. Some grocers and retailers also moonlight as informal money changers. The system is rife with desperation and abuse. 'People are at their mercy,' said Mahmoud Aqel, a displaced resident of southern Gaza. 'No one can stop them.' Inflation in Gaza surged 230% in 2024, according to the World Bank. After a brief dip during a ceasefire in January, it rose again when the truce collapsed in March. By year's end, about 80% of the population was unemployed – a number likely even higher now. Most of the few who do work are paid by direct deposit, but that means little in a cash-only economy. 'When you want to buy vegetables, food, water, medication – if you want to take transportation, or need a blanket – you must use cash,' said al-Dahdouh. Shahid Ajjour's family has survived on savings since the war destroyed their pharmacy and other businesses. She sold her gold jewellery to buy basic goods. The family of eight now spends US$12 every two days on flour – triple the pre-war cost. Sugar, once US$2 a kilogramme, now costs up to US$100, several people said. Petrol sells for around US$25 per litre. Broken Arab Bank ATMs in Gaza City. — AP After 21 months of war, Gaza's banknotes are literally falling apart. 'Money is so fragile, it feels like it's going to melt in your hands,' said Mohammed al-Awini, who lives in a tent camp in southern Gaza. Small business owners are under pressure to accept only crisp, undamaged bills – because their suppliers demand the same. Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers insist on brand-new 200-shekel notes (around US$60), which are rare. Civilians usually hand him ragged 20-shekel notes (about US$6). On a recent trip to the market, Ajjour transferred US$100 to a broker and received about US$50. But the merchant refused the worn bills. 'So the worth of your US$50 is zero in the end,' she said. The shortage of acceptable currency has sparked a strange new business: banknote repair. In Gaza, it now costs between 3 and 10 shekels (US$1–US$3) to patch up a tattered bill. But even taped-up notes are often rejected. To ease the crisis, the Palestine Monetary Authority introduced a digital payment system, Iburaq, in 2023. It attracted about half a million users – roughly a quarter of the population – but most merchants refuse digital payment, insisting on cash. Efforts to regulate prices or exchange rates have collapsed. 'Nobody can physically monitor what's happening,' said Dalia Alazzeh, a finance expert at the University of the West of Scotland. Israel has meanwhile tightened restrictions on humanitarian aid, citing claims that Hamas siphons off goods to resell. It's unclear if the cash broker system directly benefits Hamas, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank. 'It's a dark place now. You don't know who is bringing cigarettes into Gaza. It's like a mafia.' The same deep-pocketed traders who bring in goods may also be running the cash operations and raking in commission. 'They benefit by imposing these commissions,' he said. For many, the only remaining option is humanitarian aid. 'This is the only way I can feed my family,' said al-Farra, who now visits food distribution centres, where crowds jostle for sacks of flour and boxes of pasta. Once, his family paid for everything in cash. Now, the worth of that cash is shrinking – or unusable. — AP
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Business Standard
11-07-2025
- Business
- Business Standard
Palestinians paying high price to get scarce cash in Gaza
Cash is the lifeblood of the Gaza Strip's shattered economy, and like all other necessities in this war-torn territory food, fuel, medicine it is in extremely short supply. With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses and commissions on those transactions have soared to about 40 per cent. The people are crying blood because of this, said Ayman al-Dahdouh, a school director living in Gaza City. It's suffocating us, starving us. At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families some of whom have begun to sell their possessions to buy essential goods. The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills. Gaza's punishing cash crunch has several root causes, experts say. To curtail Hamas' ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza's financial system prompted foreign businesses selling goods into the territory to demand cash payments. As Gaza's money supply dwindled and civilians' desperation mounted, cash brokers' commissions around 5 per cent at the start of the war skyrocketed. Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers. If I need $ 60, I need to transfer $ 100, said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it. In 2024, inflation in Gaza surged by 230 per cent, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March. Cash touches every aspect of life in Gaza About 80 per cent of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts. But when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything you must use cash, al-Dahdouh said. Shahid Ajjour's family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war. We had to sell everything just to get cash, said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $ 12 every two days on flour; before the war, that cost less than $ 4. Sugar is very expensive, costing the equivalent of $ 80-100 per kilogram, multiple people said; before the war, that cost less than $ 2. Gasoline is about $ 25 a litre, or roughly $ 95 a gallon, when paying the lower, cash price. Bills are worn and unusable The bills in Gaza are tattered after 21 months of war. Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza. Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them. Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($ 60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($ 6) notes that are often in poor condition. On a recent visit to the market, Ajjour transferred the shekel equivalent of around $ 100 to a cash broker and received around $ 50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren't in good condition. So the worth of your $ 50 is zero in the end, she said. This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($ 1-3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected. People are at the mercy of cash brokers After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power. People are at their mercy, said Mahmoud Aqel, who has been displaced from his home in southern Gaza. No one can stop them. The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. Nobody can physically monitor what's happening, Alazzeh said. A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash. Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold. Experts said it is unclear if the cash brokers' activities benefit Hamas, as some Israeli analysts claim. The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank. It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia. These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. They benefit by imposing these commissions, he said. Once families run out of cash, they are forced to turn to humanitarian aid. Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta. This is the only way I can feed my family, he said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Euronews
11-07-2025
- Business
- Euronews
Cash in Gaza: Palestinians pay a high price in a shattered economy
Cash is the lifeblood of the Gaza Strip's shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply. With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses. Commissions on those transactions have soared to about 40%. 'The people are crying blood because of this,' said Ayman al-Dahdouh, a school director living in Gaza City. 'It's suffocating us, starving us.' At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families, some of whom have begun to sell their possessions to buy essential goods. The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills. Gaza's punishing cash crunch has several root causes, experts say. To curtail Hamas' ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza's financial system prompted foreign businesses selling goods into the territory to demand cash payments. As Gaza's money supply dwindled and civilians' desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed. A person needing cash can transfer money electronically to a broker and moments later will be handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers. 'If I need $60, I need to transfer $100,' said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. 'This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it.' In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March. Cash touches every aspect of life in Gaza About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts. But 'when you want to buy vegetables, food, water, medication — if you want to take transportation, or you need a blanket, or anything — you must use cash,' al-Dahdouh said. Shahid Ajjour's family has been living off of savings for two years after the pharmacy and another business they owned were ruined by Israel's war in Gaza. 'We had to sell everything just to get cash,' said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 (€10.30) every two days on flour. Before the war, that cost less than $4 (€3.40). Sugar is very expensive, costing the equivalent of $80 to $100 per kilogram (€68.40 to €85.50), multiple people said. Before the war, this cost less than $2 (€1.70). Gasoline is about $25 a litre (€21.40), or roughly $95 a gallon (€81.20), when paying the lower, cash price. Bills are worn and unusable The bills in Gaza are tattered after 21 months of war. Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza. Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them. Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel (€51.40) bank notes, which he said are rare. Most civilians pay him with 20-shekel (€5.10) notes that are often in poor condition. On a recent visit to the market, Ajjour transferred the shekel equivalent of around €85 to a cash broker and received around €43 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren't in good condition. This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels (€2.50) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected. People are at the mercy of cash brokers After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power. 'People are at their mercy,' said Mahmoud Aqel, who has been displaced from his home in southern Gaza. 'No one can stop them.' The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. 'Nobody can physically monitor what's happening,' Alazzeh said. A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash. Israel claimed it sought to ramp up pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold. Experts said it is unclear if the cash brokers' activities benefit Hamas, as some Israeli analysts claim. The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank. 'It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia.' These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. 'They benefit by imposing these commissions,' he said. Once families run out of cash, they are forced to turn to humanitarian aid. Al-Farra said that is what prompted him to begin seeking food at an aid distribution center. Palestinians must jostle for flour and boxes of pasta, as there often isn't enough to go around. 'This is the only way I can feed my family,' he said.
Time of India
11-07-2025
- Business
- Time of India
To get their own cash, people in Gaza must pay middlemen a 40% cut
Cash is the lifeblood of the Gaza Strip's shattered economy, and like all other necessities in this war-torn territory - food, fuel, medicine - it is in extremely short supply. With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses - and commissions on those transactions have soared to about 40%. "The people are crying blood because of this," said Ayman al-Dahdouh, a school director living in Gaza City. "It's suffocating us, starving us." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Walmart Cameras Captured These Hilarious 20 Photos Undo At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families - some of whom have begun to sell their possessions to buy essential goods. The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills. Live Events Gaza's punishing cash crunch has several root causes, experts say. To curtail Hamas ' ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza's financial system prompted foreign businesses selling goods into the territory to demand cash payments. As Gaza's money supply dwindled and civilians' desperation mounted, cash brokers' commissions - around 5% at the start of the war - skyrocketed. Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers. "If I need $60, I need to transfer $100," said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. "This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it." In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March. Cash touches every aspect of life in Gaza About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts. But "when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything - you must use cash," al-Dahdouh said. Shahid Ajjour's family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war. "We had to sell everything just to get cash," said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4. Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2. Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price. Bills are worn and unusable The bills in Gaza are tattered after 21 months of war. Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza. Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them. Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition. On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren't in good condition. "So the worth of your $50 is zero in the end," she said. This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected. People are at the mercy of cash brokers After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power. "People are at their mercy," said Mahmoud Aqel, who has been displaced from his home in southern Gaza. "No one can stop them." The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. "Nobody can physically monitor what's happening," Alazzeh said. A year ago, the Palestine Monetary Authority , the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash. Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold. Experts said it is unclear if the cash brokers' activities benefit Hamas, as some Israeli analysts claim. The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank. "It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia." These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. "They benefit by imposing these commissions," he said. Once families run out of cash, they are forced to turn to humanitarian aid. Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta. "This is the only way I can feed my family," he said.
San Francisco Chronicle
11-07-2025
- Business
- San Francisco Chronicle
Cash is scarce in Gaza. Palestinians are paying a high price to get it
DEIR AL-BALAH, Gaza Strip (AP) — Cash is the lifeblood of the Gaza Strip's shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply. With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses — and commissions on those transactions have soared to about 40%. 'The people are crying blood because of this,' said Ayman al-Dahdouh, a school director living in Gaza City. 'It's suffocating us, starving us.' At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods. The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills. Gaza's punishing cash crunch has several root causes, experts say. To curtail Hamas' ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza's financial system prompted foreign businesses selling goods into the territory to demand cash payments. As Gaza's money supply dwindled and civilians' desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed. Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers. 'If I need $60, I need to transfer $100,' said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. 'This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it.' In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March. Cash touches every aspect of life in Gaza About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts. But 'when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything — you must use cash,' al-Dahdouh said. Shahid Ajjour's family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war. 'We had to sell everything just to get cash,' said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4. Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2. Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price. Bills are worn and unusable The bills in Gaza are tattered after 21 months of war. Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza. Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them. Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition. On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren't in good condition. 'So the worth of your $50 is zero in the end,' she said. This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected. People are at the mercy of cash brokers After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power. 'People are at their mercy,' said Mahmoud Aqel, who has been displaced from his home in southern Gaza. 'No one can stop them.' The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. 'Nobody can physically monitor what's happening,' Alazzeh said. A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash. Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold. Experts said it is unclear if the cash brokers' activities benefit Hamas, as some Israeli analysts claim. The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank. 'It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia.' These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. 'They benefit by imposing these commissions,' he said. Once families run out of cash, they are forced to turn to humanitarian aid. Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta. 'This is the only way I can feed my family,' he said. ___ Kullab reported from Jerusalem.
