In Gaza’s markets, people’s suffering is no longer limited to securing basic necessities like food, medicine, and daily supplies; it now extends to the means by which they purchase these essentials.
The banknotes that circulated throughout the years of war and displacement have become worn and tattered, and some merchants and citizens refuse to accept them. The shekel itself has become a new problem added to the list of daily burdens.
With the continued shortage of cash and the ban on importing new banknotes into the Gaza Strip, worn-out currency now constitutes a significant portion of the circulating money supply.
Economic researchers estimate that more than 40% of the cash in circulation in Gaza’s markets is now worn-out, while the ten-shekel note has practically disappeared from circulation, despite representing about 7% of the total currency in circulation, and has not been replaced for two years.
Gazans face an unfamiliar daily reality: they may hold money, but it’s difficult to use because the bills they have are worn, torn, or rejected by the seller.
The problem is exacerbated with the 20-shekel note, which has become one of the most frequently worn denominations, while the 10-shekel note has lost so much credibility that it has practically disappeared from circulation.
With smaller denominations unavailable, obtaining change for purchases becomes an additional challenge, and simple transactions can be disrupted before they even begin due to a lack of suitable cash.
Thus, the cash crisis extends beyond a shortage of liquidity; it also affects the quality of the existing banknotes, making daily buying and selling more difficult, especially for families without alternative payment methods.
