Hamas police in Khan Younis released footage of what it called a “field operation” against cash brokers in the southern Gaza Strip, highlighting a worsening currency shortage that has strangled daily life for residents.
In the video, fighters from Hamas’ Sahm Unit are seen brutally beating traders with sticks and kicking them. According to Gaza residents, the men targeted were charging commissions of up to 50% on cash withdrawals during the war.
A Hamas statement said the unit had taken “decisive measures against dozens of cash traders and commission-takers.” In the video, crowds of onlookers are seen cheering the attacks.
Hamas police beat cash brokers in Khan Younis who refused to accept bills
The statement, published on a Telegram channel called “Catch a Collaborator” run by a Hamas operative living in Belgium, added: “A heavy hand will be used against anyone who refuses to accept payment in the official currencies of the Strip.”
Nearly two years into the war, Hamas still operates openly in Gaza, in part because Israel has failed to put forward an alternative governing authority. The violence comes as Israel prepares for a ground offensive to take over Gaza City.
Cash has become the lifeline of Gaza’s shattered economy, now as scarce as food, fuel and medicine. Most bank branches and ATMs are shut down, leaving residents dependent on powerful cash traders who extract soaring fees. Some commissions, which stood at about 5% when the war began, have now climbed to nearly 50%. Even existing banknotes are losing value; with no new supply of shekels from Israel, businesses refuse to accept worn bills, making crumpled cash effectively worthless.
The roots of the crisis lie in both war policy and economic collapse. Israel stopped allowing cash shipments into Gaza when the war began, aiming to block Hamas from paying fighters and funding weapons. At the same time, wealthy Gazan families pulled their money out of banks and left the territory, while foreign suppliers began demanding cash payments out of fear the banking system would collapse.
The system has become both simple and punishing: a resident wires money digitally to a broker, and receives only a fraction of the amount back in cash. Traders operate openly or in secret, and even small shopkeepers have begun offering cash exchange services.
According to the World Bank, inflation in Gaza surged 230% in 2024. Prices dipped briefly during a cease-fire in January but rose again after Israel withdrew from the agreement in March. By the end of 2024, 80% of Gaza’s population was unemployed — a figure believed to be even higher today. Those few still working are typically paid via bank transfers, but to buy vegetables, water, medicine, or even bus fare, they must first find cash.