Gaza faces cash liquidity crisis

Ramallah: The Palestine Monetary Authority (PMA) has said that the Gaza Strip is experiencing a cash liquidity crisis due to the disruption of banking operations caused by the ongoing Israeli attacks.

Many banks have been destroyed amid the conflict, and it has become impossible to open the remaining bank branches in the entire region due to bombings, power outages, and security concerns, Xinhua news agency reported, citing the PMA.

The liquidity crunch has intensified as the majority of ATMs have gone out of service, the PMA said in a statement on Sunday.

The authority is monitoring “complaints from residents of the Gaza Strip about extortion operations carried out by people, traders, and some unlicensed currency exchange shop owners, using point-of-sale deduction devices or financial transfers on banking applications”, said the statement.

These individuals exploited the residents’ need for cash, charging up to 15 per cent on any amount withdrawn from citizens’ accounts via plastic cards or transfers, in return for providing the remaining amount in cash, said the PMA, noting that immediate deterrent measures will be taken against those who engage in such behaviour.

IANS