Criminal gangs thrive in Gaza as cash shortage worsens misery

A shortage of banknotes is gripping Gaza, fueling criminal gangs and profiteering, after Israel has blocked imports of cash and most banks in the enclave have been damaged or destroyed during the war, according to residents, aid workers and banking sources.

After more than 7 months of Israeli bombardment, just a handful of ATMs remain operational in the strip, most of them in the southern city of Rafah, where some 1.4 million Palestinians are sheltering. The Israeli army has ordered civilians to evacuate parts of the southern city, sparking fears of a looming offensive. Its tanks entered residential districts there on Tuesday.

Supplies of basic goods had returned to some markets in April and early May for the first time in months after Israel ceded to international pressure to let in more aid trucks amid famine warnings.

But residents and aid workers say that many people haven't had the cash to purchase them. Now residents say Israel's offensive in Rafah has dried up supplies again and stoked prices.

Hundreds, sometimes thousands, of desperate people crowd outside ATMs, often waiting days for access. Armed gangs sometimes demand a fee to provide priority access, exploiting the absence of Palestinian police, three Western aid workers and seven residents told Reuters.


Reuters