Gaza faces cash crisis as main banks halt operations

The main Palestinian banking association has said that all banks across Gaza have halted operations, the latest deterioration in living conditions to hit the war-ravaged enclave.

Bashar Yasin, general manager of the Association of Banks in Palestine, confirmed the closure on Wednesday.

The association represents banks across the occupied West Bank and Gaza.

A number of banks had been semi-operational across Gaza before Wednesday, including a large Bank of Palestine branch in the central city of Deir al-Balah.

It was not immediately clear why the branch, the last place that Palestinians could withdraw cash, was closed.

The 10-month war has devastated Gaza’s already fragile economy, displacing most of the population, causing widespread damage and leaving the vast majority of Palestinian workers unemployed.

A cash crisis has worsened these problems, with displaced people having little or no access to their meager savings as prices for food and basic commodities have increased.

For months, hours-long queues had formed outside the few working branches and cash points, with limits on how much could be withdrawn.