Palestinian Territory – The worsening liquidity crisis in the Gaza Strip is deeply alarming. The crisis is a direct result of Israeli actions aimed at dismantling the necessities of life for the Strip's civilian population, particularly the banking system, through deliberate destruction and a comprehensive blockade.
Israel's imposition of coercive living conditions is meant to lead to the slow and systematic destruction of the Palestinianpopulation. This constitutes an act of genocide, prohibited under international law, and is a flagrant violation of international humanitarian law and a direct breach of the fundamental rights of Palestinians, particularly the rights to life, human dignity, an adequate standard of living, food, health, housing, and work.
Since the beginning of its genocide in the Gaza Strip in October 2023, Israel has blocked banks and financial institutions from bringing in any cash. This has been accompanied by the targeted destruction of bank headquarters and ATMs, forcing most of them to shut down and triggering a deepening humanitarian and economic crisis that continues to escalate each day. The measures are clearly part of a systematic effort to eliminate any means of survival for Palestinians in the Gaza Strip.
The consequences of the severe cash shortage have become nearly unbearable, especially after more than 18 months of the ongoing genocide. With banking services—including simplewithdrawals and deposits—virtually non-existent, residents have been forced to turn to the black market, where high commissions further deplete their already scarce resources.
These conditions have intensified people's financial, economic, and psychological hardship, particularly the suffering of themost vulnerable groups, such as low-income families. These families now make up the majority of the Gaza Strip'spopulation, due to the widespread loss and deliberate destruction of livelihoods under Israel's systematic policy of starvation and impoverishment.
Employees, business owners, and families who rely on remittances from abroad can now only access cash through informal channels controlled by a small group of merchants and money changers. These actors monopolise cash flow and exploit public need, charging commissions of up to 35%. All of this is taking place in the complete absence of any oversight or accountability, due to Israel's systematic undermining of public order and consequent dismantling of the Gaza Strip's security and justice systems.
Most residents of the besieged enclave have lost their livelihoods due to either the killing or injury of family breadwinners or the widespread destruction caused by Israel. Those who still receive salaries are unable to access them in the form of cash, further worsening the humanitarian crisis. As a result, the vast majority of residents cannot meet their basic needs, including food, medicine, rent, and the costs associated with relocation and transportation due to forced displacement.
The crisis is worsening daily, driven by sharp price increases and severe shortages of basic goods due to Israel's illegal blockade, which has now prevented the entry of humanitarian aid and supplies into the Gaza Strip for over 50 days. Widespread and systematic destruction has also created a housing shortage, further compounding people's suffering and threatening their very survival.
In a statement to Euro-Med Monitor, Malek Hamed, age 36 anda resident of Gaza City, said: "I work at a local university and have been receiving only a portion of my salary, which is $300, since the war began. With banks closed and no way to withdraw my pay, I am forced to go to a merchant for cash, who takes more than a third of the amount as a fee."
Hamed added: "Despite outrageous costs and many obligations, my greatest concern is the extreme difficulty in securing cash to buy medicine for my 3-year-old son, Anas, who suffers from a severe neurological disorder called Dravet syndrome. Medications worth about $110 per month are essential to control the condition, which amounts to more than half of my actual salary. However, the only option is to secure the amount in cash to save my child's life."
Hassan Salah, 42, a Palestinian Authority employee who supports six people, also spoke to Euro-Med Monitor. "Due to the war and the blockade, prices have increased several times, and financial burdens have risen far beyond my income," he said. "My salary is about $420, but I cannot receive it in full because of the bank closures. I go to a money exchange to get it in cash, but it is reduced to about $290 because of the commission."
Continued Salah: "Like most in Gaza, I have been displaced multiple times and have faced heavy financial burdens. With the blockade tightening, basic commodity prices have skyrocketed, and I can't even provide enough flour for my family. Borrowing is not an option, as most people are in the same or worse financial situation."
The direct targeting of the Gaza Strip's financial sector—including a comprehensive financial blockade, cash entryrestrictions, and the destruction of banking infrastructure—is not only a physical attack on the economy but also a central tool in Israel's policy of starvation and mass destruction.
These actions blatantly violate Israel's obligations as an occupying power under international law, which require it to ensure basic economic and social welfare and not obstruct the functioning of civilian institutions such as banks and financial institutions, which are vital to the occupied population's survival. Instead, Israel is deliberately draining the Strip's monetary resources, creating a suffocating financial reality that is inseparable from its broader campaign of genocide by using financial deprivation to immobilise civilian life and destroy the collective capacity to survive.
Israel's policies are a glaring violation of international human rights law, including inalienable rights such as the right to life;the right to the enjoyment of the highest attainable standard of physical and mental health; the right to an adequate standard of living, including adequate food, housing, and clothing; the right to work under just and favourable conditions; and the right to social protection.
Deliberately denying residents of the Gaza Strip access to basic financial resources and the ability to meet vital needs forces them into inhumane conditions, violating their dignity and depriving them of basic security. Such actions directly violate Israel's legal obligations under human rights treaties including the International Covenant on Economic, Social and Cultural Rights, which requires it to respect, protect, and fulfil these rights without discrimination.
The international community, especially the States Parties to the Geneva Conventions and the International Covenant on Economic, Social and Cultural Rights, must take urgent and concrete action to stop Israel's systematic violations against civilians in the Gaza Strip, particularly the Israeli use of financial deprivation as a tool to destroy the Palestinian population.
Immediate international pressure is needed to compel Israel to lift its illegal blockade of the Gaza Strip, including the financial blockade, and to allow the unconditional flow of cash, salaries, remittances, and humanitarian aid, as well as the full and safe resumption of banking operations.
There is also an urgent need to launch independent international investigations into Israel's use of the aforementioned financial policies as a tool of genocide, and to activate accountability mechanisms at both the domestic and international levels, including the prosecution of those involved in designing and executing these policies.
All states, individually and collectively, must fulfil their legal obligations and take urgent action to stop Israel's genocide in the Gaza Strip. This includes taking effective measures to protect Palestinian civilians, ensuring Israel's compliance with international law and the rulings of the International Court of Justice, and holding it accountable for its crimes against the Palestinian people. The International Criminal Court must issue arrest warrants for the Israeli Prime Minister and former Defence Minister at the earliest opportunity and ensure they are brought to international justice.
The international community must impose economic, diplomatic, and military sanctions on Israel for its systematic and grave violations of international law. These sanctions should include an arms embargo; an end to all political, financial, and military support; freezing the assets of officials involved in crimes against Palestinians; imposing travel bans; and suspending trade privileges and bilateral agreements that provide Israel with economic benefits that enable its continued crimes.
