The war in Gaza has devastated the financial sector, leaving banks, exchange companies, and financial institutions critically impaired. Economic experts highlight that Israeli airstrikes have not only destroyed the physical infrastructure of these institutions but have also exacerbated the blockade, isolating Gaza's economy further from the global financial system.

Recent data from the World Bank reveals that approximately 93% of bank branches in Gaza have been destroyed, with 88% of microfinance institutions and exchange offices also severely damaged. Insurance companies have been hit hard, with 88% of them rendered non-functional. According to the Palestinian Monetary Authority, only three out of 94 ATMs are still operational, highlighting the extent of the crisis.

Dr. Thabet Abu Al-Rus, an economic specialist, explained that the restrictions imposed by Israel, including the blockade on cash flows in and out of Gaza, have caused widespread financial instability. The closure of exchange offices in the West Bank, which were key to money transfers to Gaza, has further deepened the crisis. Abu Al-Rus added that these measures have stalled economic activity and deterred potential investments in rebuilding efforts.

Dr. Nael Mousa, another economic expert, emphasized that the destruction of banking infrastructure has caused a near-total collapse of the sector, preventing essential financial services like deposits and transfers. The loss of 88% of microfinance institutions is particularly devastating, as it halts funding for small and medium enterprises, which are crucial for the local economy and employment. The destruction of insurance companies has left both individuals and businesses without the means to recover financially from the damage caused by the war.

In response to the worsening situation, the Palestine Monetary Authority has introduced an electronic payment system via mobile phones to help alleviate the cash shortage. Despite this, experts agree that the financial system's collapse has a profound impact on the broader economic stability of Gaza, leaving its population vulnerable and with limited means to rebuild.

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