Reports: Gaza faces ‘cash famine’ amid banking collapse and Israeli restrictions

What happened

Al Jazeera Sudan reports that Gaza is experiencing a severe liquidity crisis described locally as a ‘cash famine’, caused by Israeli restrictions on cash inflows and extensive war damage to the territory’s banking infrastructure. More than 50 bank branches and dozens of ATMs have been destroyed since the fighting escalated in October 2023, according to the Palestine Monetary Authority.

Outside Brief is treating this as a source-led account. Any disputed responsibility, casualty figure, battlefield claim or single-source assertion should be treated as unconfirmed/hearsay unless confirmed by another reliable source or a named official. The banking collapse has left many Palestinians unable to open accounts or access electronic wallets, particularly those with war-issued replacement IDs that banks reportedly do not accept. This forces residents to rely on scarce and often worn banknotes that merchants increasingly refuse to accept, complicating basic purchases and daily commerce.

Consumers interviewed in Gaza City describe persistent difficulties purchasing goods, with some forced to depend on phone-based monetary transfers that require steady internet access and compatible devices. Frequent outages and a lack of technological familiarity add layers of complexity, undermining trust between sellers and buyers.

Known from the source

• Israeli restrictions and war damage have caused a banking liquidity crisis in Gaza.
• More than 50 bank branches and dozens of ATMs have been destroyed since October 2023, per the Palestine Monetary Authority.
• Israeli cash entry restrictions and infrastructure damage continue despite a ceasefire in October 2025.
• Many residents cannot open or use bank accounts or electronic wallets with war-issued identification.
• Merchants are increasingly refusing worn-out banknotes, complicating cash transactions.

What remains unclear

The crisis is exacerbated by a war-damaged communications infrastructure and Israeli-imposed limits on financial liquidity. Even though some bank branches have reopened under a ceasefire settled in October 2025, financial services remain restricted mostly to administrative functions, with new cash injections still lacking.

What remains unclear: Confirm whether the central claim is corroborated; until then treat it as unconfirmed/hearsay. Independent verification of the exact number of bank branches and ATMs destroyed. Corroboration of banks not accepting replacement IDs issued after 2023. Current status of Israeli restrictions on cash entry to Gaza following the 2025 ceasefire.

Evidence note

Outside Brief has kept this brief source-led and attributed. Claims should be read alongside the original source linked below.

Original source: Al Jazeera Sudan. Open the source.