Ban Gaza Notes to Cripple Hamas? Israeli Expert Proposes Bold Economic Strike

Tel Aviv: An Israeli expert has suggested that Israel should invalidate Gaza's bank notes to weaken Hamas' cash. Eyal Ofer, an expert on Hamas' economy in Gaza, said on Tuesday that Israel should cancel the bank notes that it knows are being used in the Gaza Strip. He claimed that this will target Hamas' cash-based economy.

Israeli Foreign Minister also gave suggestion

According to the Jerusalem Post report, earlier Israeli Foreign Minister Gideon Sa'ar had also expressed similar views. Last week, he asked the Governor of the Bank of Israel to cancel all 200 shekel bills to weaken Hamas' financial position. "Gaza operates as a cash economy," Ofer told. He said, "Most of the trade in the Strip's markets, which include hundreds of stalls trading humanitarian aid, is done in cash, mostly using low-value bills of 20 and 50 shekels. These bills pass from one hand to another and are worn out so quickly that they often tear."

Hamas created a cash economy

He said, "Today Gaza's traders are refusing to accept a large part of these notes, which are worn out and are now on the verge of breaking." However, significant sums of money in the Strip - about NIS 10 billion - are held in large denomination notes of 100 and mainly 200 shekels. "These notes were brought into the Strip over several years, transferred directly from the Bank of Israel to Gaza bank branches and loaded into local ATM machines," Ofer said. "During the war Hamas earned money mainly by collecting protection payments from merchants and UN agencies receiving aid trucks," he added.

Hamas' Wealth Secret

"It is difficult to estimate the total amount of wealth Hamas has accumulated, but according to various assessments, including from security sources, during the war it is somewhere around four to five billion shekels," Ofer said. He estimated that Hamas has already spent about 1 billion NIS on the salaries of its activists and new recruits. Over time, Hamas has effectively become Gaza's "shekel bank."