ICSPR Sends Urgent Briefing Memorandum to International Bodies on the Cash Crisis and Financial Blockade Imposed on the Gaza Strip

Date: May 5, 2025

Press Release

ICSPR Sends Urgent Briefing Memorandum to International Bodies on the Cash Crisis and Financial Blockade Imposed on the Gaza Strip

The International Commission to Support Palestinian Rights (ICSPR) has sent an urgent briefing memorandum to a number of international and regional bodies and institutions, regarding the cash crisis and suffocating financial blockade resulting from the ongoing genocide in the Gaza Strip for more than 18 months. The blockade has led to a near-total paralysis of economic and financial life, exacerbating the suffering of civilians in the Strip.

The briefing was sent to: the UN Secretary-General, the UN High Commissioner for Human Rights, the Human Rights Council, the UN Fact-Finding Mission, the International Criminal Court, the UN Special Rapporteur on the situation of human rights in the occupied Palestinian territory, the European Union, the Inter-Parliamentary Union, the European Parliament, the African Union, and the League of Arab States.

In its message, the Commission affirmed that the Israeli occupation authorities, since October 7, 2023, have continued to commit serious violations of international humanitarian and human rights law by imposing a suffocating financial blockade on the Gaza Strip, which constitutes one of the forms of the ongoing genocide and aims to systematically destroy the means of life.

First: A suffocating cash crisis sweeping the Gaza Strip

The briefing highlighted that the Israeli occupation imposes strict restrictions on the entry of cash, especially the Israeli shekel, which has disrupted banking services and led to the closure of all bank branches in the Gaza and North governorates, leaving only two branches of Bank of Palestine operating in Nuseirat and Deir al-Balah.

It also noted the occupation’s refusal to transfer clearance funds and its imposition of cash-only payments on traders, resulting in cash hoarding and high commission rates reaching up to 35%, alongside soaring prices and severe inflation.

Second: Systematic violations targeting the financial sector

The Commission emphasized that Israeli policies involve direct targeting of banks and salary distribution centers, prohibition of bank transfers, and monopoly of liquidity by certain traders exploiting the lack of oversight. This is compounded by the absence of effective governmental policies amid the declining role of the Palestinian Authority in Gaza, closure of crossings, and the prevention of money and aid entry.

Third: Logistical and security challenges related to cash

The briefing pointed out that transporting and depositing money has become nearly impossible due to security risks, along with a rise in theft and robbery amid lawlessness. The disbursement of salaries, as well as allowances for the wounded and families of martyrs, has halted, with most of the funds redirected to Ramallah without alternatives inside the Strip.

Fourth: Devastating impact on daily life

ICSPR documented the crisis’s impact on daily life, including the deterioration of paper currency, refusal to accept 20 and 200 shekel denominations, imposition of high commission rates that have eroded purchasing power, and worsening hunger due to soaring prices and declining aid.

Fifth: Urgent call for international action

ICSPR warned that the continuation of this reality portends an unprecedented humanitarian catastrophe and is a clear indication of the occupation’s intent to deepen the genocide. It called on international actors to take immediate practical steps, most notably:

• Including financial and economic crimes committed against Gaza’s population in ongoing investigations before international judicial bodies.

• Immediate intervention to lift the financial and cash blockade and ensure the entry of liquidity.

• Providing international protection for civilians and imposing accountability mechanisms on the occupation.

• Urging the Palestinian Authority to assume its responsibilities towards Gaza’s residents and disburse the financial entitlements of employees, the wounded, and families of martyrs.

At the conclusion of the briefing, Dr. Salah Abdul-Ati, Chairman of ICSPR, stressed that time is running out to save civilians, calling on the international community to shoulder its legal and humanitarian responsibilities.