The Gaza 'money launderers' cleaning up soiled banknotes to keep them in circulation

With no replacement currency available, resourceful Palestinians are offering to restore damaged notes

Worn-out banknotes in Deir Al Balah, Gaza. In the Gaza Strip, where the Israeli army destroyed many banks and ATMs, all branches have been closed for more than 11 months. Getty Images

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For Sobhi Al Far, cleaning money is not just a job – it is a lifeline. In the war-torn Gaza Strip, where banks have been closed and new banknotes can no longer enter the area, Mr Al Far has found himself an unusual profession: cleaning worn-out currency.

“About a year ago, people started using the same currency and cash in the market so much that the banknotes began to wear out,” Mr Al Far told The National.

Before the war, the business graduate was struggling to find work. “At the beginning of the war, I worked as a vendor in the markets, but with the shortage of goods, I stayed at home for a while before turning to cleaning currencies,” he said.

From his home in Beit Lahia, in northern Gaza, Mr Al Far, 28, works daily to clean and restore these badly damaged banknotes, as traders and civilians alike have begun to reject them. Without access to the banks for replacements, people are desperate to make use of the cash they have.

“The profession of cleaning money never existed in Gaza before, but now it’s become essential. There are no banks to exchange the worn-out money, and people need to spend the money they have since there’s no alternative,” Mr Al Far explained.

The process is simple yet effective. Banknotes are washed with water and soap and then hung out to dry. The cleaning process improves the notes by about 80 per cent, turning previously unusable currency into notes that can circulate once again in the market.

“I charge people for cleaning each note based on its value. For example, I take two shekels for cleaning a 20-shekel note, four shekels for a 100-shekel note, and five shekels for a 200-shekel note,” Mr Al Far said.

In the three months since he started his unusual business, Mr Al Far now cleans about 10,000 shekels a day for both consumers and traders.

“Thankfully, the work is going well, and people are satisfied with the quality of the cleaning service I provide,” Mr Al Far said, grateful for the work that has allowed him to support himself after months of unemployment.

The closure of Gaza's banks since the start of the war on October 7 has led to a crippling cash flow crisis. ATMs are out of service, and new currency cannot enter Gaza, forcing people to reuse the same worn-out money. Traders have stepped in, charging high fees to give people access to their own money.

Worn and torn coins and notes in a marketplace in Deir al Balah, Gaza. With very limited money flowing into Gaza under Israeli attacks, most of the paper money used is worn and torn. Getty Images

Cash-out business

Hassan Attallah, a currency exchange shop owner in Gaza city, has witnessed the situation worsen over time.

“People started turning to shop owners and some traders to access their money from their bank accounts using bank cards or mobile banking apps,” Mr Atallah, 37, told The National. “Initially, traders charged a small fee of 5 per cent to 7 per cent, but now the rates have skyrocketed to as high as 30 per cent.”

But with hardly any internet available in the enclave, paying by using the app has become more challenging. The shop owner has been involved in cash-out business for eight months in northern Gaza. “Major traders supply me with the cash they collect from people, and I redistribute it by cashing out for people at a rate determined by the market. Currently, I cash out at a rate of 17 per cent, and my profit is 3 per cent, which is deducted from the trader,” he said.

People are constantly asking for cash and are willing to pay any rate because they need it so badly

Hassan Attallah,
currency exchange shop owner

“People are constantly asking for cash and are willing to pay any rate because they need it so badly,” Mr Attallah added, saying that it is the traders controlling the liquidity who drive the soaring fees. “We, as currency exchange shop owners, are merely intermediaries.”

The Palestinian Monetary Authority has acknowledged the destruction of bank branches due to continuing bombardments in Gaza. A May statement by the authority highlighted the unprecedented liquidity crisis, worsened by the failure of ATMs across the strip.

Despite the challenges, Mohammad Abu Jayyab, an economics journalist in Gaza, is urging the Monetary Authority in Ramallah to take swift action. “The authority should issue an official statement clarifying that all currency denominations in Gaza are valid for trade as long as they are not counterfeit, regardless of their condition,” Mr Abu Jayyab told The National.

He also emphasised that once the war is over, the banks should handle the replacement of damaged banknotes at their full face value, as is the norm in every country.

“The liquidity crisis has allowed war profiteers, vendors, and black market traders to hoard cash while the formal trading system has been paralysed,” Mr Abu Jayyab said.

Rejected currency

To address the cash crisis, the Monetary Authority recently launched an app called E bouraq, an instant payments system between banks and payment service companies which allows citizens to make financial transactions electronically and aims to reduce the reliance on physical cash. The authority also announced that the execution of instant transfers would be free of charge for both senders and recipients.

The launch of this system comes as many bank branches and ATMs remain out of service due to the continuing conflict. It is designed to enable salary payments and address the pressing need for alternatives to cash transactions.

For Moaz Mousa, a food seller on a stall in Al-Jalaa Street in northern Gaza, the situation has become dire. “Money has become an obsession for people and traders,” he said

Many of his customers spend time inspecting the money he gives them, often asking to exchange it, claiming it will not be accepted elsewhere. “I’ve lost confidence in any currency I receive, and now I have around 10,000 shekels in notes that no one wants to take,” Mr Mousa, 22, told The National.

The currency has become so worn-out during the war that traders have stopped accepting it, leading to a vicious cycle where people no longer want to spend the money they have.

Mahmoud Al Nather, 42, a resident of Jabalya and an employee of the Ramallah Authority, has been withdrawing his salary through currency exchange shops since the war began. The commissions started at 8 per cent but have since soared to 20 per cent and, at times, even 30 per cent.

“Traders are trying to exploit people’s suffering,” Mr Al Nather told The National. “It’s not enough that they profit from trading goods – they want to profit from the money they’ve already collected from people in the markets.”

Mr Al Nather often receives old and worn-out currency that is not accepted in the market, he says. “We have no choice but to take it because there’s no alternative, but now this unusable money is piling up at home.”