Gaza's Cash Crunch Spurs a Thriving Black Market
A severe cash shortage in Gaza, worsened by an Israeli blockade, has given rise to a booming black market where traders charge exorbitant fees. Brokers now demand commissions as high as 30%, making everyday essentials increasingly unaffordable.
Published on March 30, 2025
Gaza continues to grapple with a severe cash shortage amid an Israeli blockade, which has halted shipments, closed banks, and dried up ATMs. As a result, a black market has emerged where traders offer hard currency at steep fees, with commission rates soaring from 15% to 30%. This trend is compounded by the wear and tear on existing bills, prompting the rise of currency repair services to keep cash viable.
Recent reports, including one from the Financial Times on March 26, 2025, and corroborating accounts from the Associated Press on March 30, 2025, underline the growing desperation in the region. The crisis not only affects everyday transactions and access to basic needs but also adds strain to an already dire humanitarian situation, as renewed military offensives and a prolonged siege further intensify the hardships faced by Palestinians.