The student who repairs banknotes in Gaza, where money has not entered for more than two years

This means that every banknote in circulation becomes more important than ever, regardless of how worn it is, and this is where Al-Baraa comes into play.

The student says: “My tools are simple: a ruler, colored pencils, and glue. The ceasefire did not change the financial situation. What I do now is to help and help people.”

After two years of violent war, Gaza’s economic collapse has been so devastating that, according to a new UN report, the entire population of more than two million people has been pushed into poverty.

Four out of five people are now unemployed, according to the United Nations Conference on Trade and Development, and even those who still have income or savings are struggling to access cash.

“It is pure suffering and nothing more,” says Numan Rayhan, who was displaced from Jabalia in northern Gaza with only a few possessions. “Lack of income, lack of money, lack of cash flow from the banks.”

Early in the war, Israeli raids targeted banks that Israeli officials said were linked to Hamas. Its coffers were looted by armed Palestinian gangs, some of whom were supposedly linked to Hamas.

The Palestine Monetary Authority said that funds worth about $180 million were stolen.

The Coordination of Government Activities Unit (COGAT), the Israeli defense body that controls Gaza’s border crossings, confirmed that in line with a political order “and because of Hamas’ reliance on cash to continue its military activity,” Israel did not allow banknotes into Gaza.

Zakaria Ajour, a trader in another market in Gaza City, says that the lack of banknotes in circulation “caused problems for sellers and buyers alike.”

People no longer want to accept worn and delicate banknotes at face value, “even if they have small scratches or pieces of tape.”

“Some customers come just because they want a change in transportation, but I don’t have any,” he adds.

“It is difficult to find 10-shekel coins,” he says. “And even when they are found, they are practically worthless due to the inflation that led to the cash shortage crisis.”

At the gates of the Bank of Palestine, in Gaza City, and in one of the nine branches that have been reopened, long lines of people appear. Although customers can only reactivate frozen accounts, open new accounts or log in to banking applications.

Asmaa Al-Ladaa wants to open an account so she can receive money directly from her relatives who live outside Gaza.

He adds: “The whole process is full of chaos and crowding. We wake up at six in the morning and leave our children in a tent. We leave everything just to come to the bank.”

In the southern city of Khan Yunis, where banks have been vandalized to the point where they can no longer reopen, Abu Khalil has just returned from a tour of central Gaza.

After spending most of the day waiting in line, he was unable to get to the bank. Just the thought of coming back the next day makes him desperate.

This elderly man receives a monthly salary of about 2,000 shekels (US$612) from the Palestinian Authority, but says that about half of his income goes to the expenses of money sellers or merchants.

“You have to pay commissions,” he complains. “There is no alternative.”

During the war, many small merchants who had previously provided money transfer and currency exchange services had to adapt to the urgent demand for cash. Thus, to convert electronic transfers into cash, they started charging high commission to customers.

Sometimes up to 50%, although it has decreased recently.

One informal money changer, who prefers to remain anonymous, says that market rules determine commission rates.

“Our work is directly linked to market activity and the flow of goods and aid,” he says.

He adds: “When there is an influx of goods and activity in buying and selling, the commission decreases significantly, sometimes reaching 20%. But when the crossings are closed, the rate increases.”

Electronic transfers through banking applications, for which shop and kiosk owners charge lower fees, have become a widespread solution for Gazans.

The Palestine Monetary Authority, which acts as a financial regulator, launched a payment system that allows instant transactions between local bank accounts.

For those who do not have accounts, the Bank of Palestine offers electronic wallets. According to this organization, there are more than 500,000 users in Gaza. These transactions can be done without an internet connection or apps, just a text message from any mobile phone.

Even e-wallets are used to send financial aid directly to families in need, by humanitarian organizations such as the United Nations Children’s Fund (UNICEF) and the World Food Programme.

UNICEF says that since the beginning of last year, it has provided cash transfers to about one million people, half of whom are children. The organization prioritizes vulnerable children, including amputees and orphans, as well as pregnant or breastfeeding mothers.

“You can go to the grocery store and buy using your phone as a payment method,” explains UNICEF’s Jonathan Crakes.

“This allows for very high traceability of how the money is spent. We have verified that 99% of all beneficiaries spend the money, first, on food and water. Then on hygiene supplies. And finally, on electricity through generators,” he adds.

Krix says he has seen families buying 2 kilograms of tomatoes for US$80 or 5 kilograms of onions for US$70.

Hanan Abu Jahl, who lives with her family in the Zawaida camp in central Gaza after being displaced, recently received 1,200 shekels ($367) from UNICEF. This money is used to buy basic products such as rice, lentils and pasta.

“My children need vegetables, fruits, meat and eggs. My youngest son especially misses eggs, but I can’t get them. Prices are still very high and I have to cover the needs of 12 people,” she explains.

US President Donald Trump’s 20-point peace plan promises “an economic development plan to rebuild and revitalize Gaza.”

To this end, he has formed a “committee of experts who have contributed to the creation of some of the Middle East’s thriving modern cities,” which anticipates new investments and “interesting development proposals” that could “create jobs, opportunity and hope for Gaza’s future.”

However, there are still no details on how to start boosting growth and promoting stability, just as the UN trade agency has warned that the sector is suffering the most serious economic crisis ever recorded.

Back in Gaza City, Baraa Abu Aoun holds up the banknote he has been expertly working on to the light. A group of customers are waiting for him, attracted by his sign promising “highly professional, tape-free” repairs.

While Baraa works, he longs to return to a normal life, with the possibility of more lucrative work.

“I just want this war to end completely,” he says. “I hope I can finally feel relief, so I can study, work and get my degree. In Gaza, we are barely surviving. We are no longer human.”

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