Gaza- The Israeli government’s direction to cancel the value of the 200 shekels of its traded currencies within the Gaza Strip raised the concerns of citizens and merchants, given the serious repercussions of this decision, if implemented, according to observers.
And he initiated the call to take this step, Israeli Foreign Minister Gazaoun Saar, before Prime Minister Benjamin Netanyahu expressed his support for this step, which he described as “excellent”, and announced his intention to discuss the matter with the governor of the Central Bank, according to several Hebrew media, Friday.
Sayer claimed, this step would destroy the economic capabilities of the Islamic Resistance Movement “Hamas”, as it possesses large quantities of this category of currency.
Since its occupation of the West Bank and the Gaza Strip in 1967, Israel has imposed on the Palestinians to circulate the shekel, and this continued after the establishment of the Palestinian Authority in 1994, due to its lack of a special national currency.
There are several categories of shekels circulating in the West Bank and Gaza, the highest of which is 200 shekels, followed by: 100, 50, 20, 10, 5, 2, 1 (the dollar equals 3.6 shekels).
Dangerous repercussions
Observers and officials believe that serious repercussions will be caused by taking this step, if the Israeli Central Bank agrees to it, especially since the Gaza Strip suffers from a major problem in the availability of trading currencies.
Because of the failure of the paper and metal criticism of the sector since the beginning of the war, in conjunction with the closure of the banks, many of the Israeli currency categories were destroyed and caused, which caused a severe shortage of cash liquidity in the hands of citizens and merchants.
In view of the closure of banks and the scarcity of cash, the residents cannot withdraw their money from the banks, which created a parallel black market, run by brokers and merchants, during which those wishing to receive their money from their bank accounts are forced to pay large financial commissions of about 30% of the value of the amount to be withdrawn.
During the past months, Gaza population has stopped circulating the 10 mineral shekels due to its weariness, and it seems that they are on the way to stop dealing with the 20 shekels category, for the same reason.
Economic war
The head of the Chamber of Commerce and Industry of the Gaza Strip sees The return of Abu Ramadan, This trend comes within the economic war waged by the Israeli occupation over the citizens in Gaza, in order to “restrict all ways to live before them, in all fields.”
“We take this trend very seriously, and it falls within the collective punishment against the residents of Gaza,” Abu Ramadan added to Al -Jazeera Net.
He believed that the repercussions of this decision – if implemented – will be very dangerous to Palestinian citizens in the first place, and said, “The situation of people is very difficult and very fragile, and this will increase the difficulty of life for citizens.”
As for its impact on the “fully destructive” economic sector, he saw that he would deepen his huge losses during the war.
Abu Ramadan warned that this step, merchants and citizens will lose their capital, as it consists mainly of this category of shekel, because it is the largest in its value.
He added, “If this step is implemented, of course, the capital of the merchants’ capital will be eroded, and their ability to recover will decrease,” warning that it will deepen the crisis of lack of cash liquidity in the sector, which will be an additional blow to the fragile reality.
Electronic trading
Abu Ramadan called on the Palestinian Monetary Authority (the Central Bank Chargé d’Affairs) to address the relevant international institutions, in order to exert pressure on Israel for not taking this step.
He also called on the Monetary Authority to reassure the residents of the Gaza Strip regarding worn and damaged currencies, and called them to circulate it without fear or concern, until the opportunity to replace them.
The head of the Chamber of Commerce called on the residents of the Gaza Strip, from merchants and citizens, to go to electronic circulation, as “he relieves us of dependency on the occupation, and protects currencies from damage and loss.”
A blow to the whole population
He sees the specialist in economic affairs Ahmed Abu Qamar, Israel’s implementation of this step will negatively reflect on all the residents of the sector, citizens and merchants.
Abu Qamar refused in an interview with Al -Jazeera Net, the Israeli allegations that this category of criticism exists with the Islamic Resistance Movement, Hamas, stressing that it is spread among all groups of the population and merchants.
He believes that Israel aims from this step – if it decides to implement it – to “strike all Palestinians in Gaza, and not only Hamas, but it wants to harm ordinary individuals, as well as merchants.”
He added, “The cash value of the 200 shekels is equivalent to about 70% of the value of the Israeli cash in Gaza, and this is normal as it is the highest in terms of value, and therefore the repercussions of this step will be dangerous.”
He continued, “People’s money and their savings are from this category, and their abolitions are destroyed by people’s money in bulk, and there will be huge losses for the population.”
He agreed with Abu Ramadan that the cancellation of this group of currency would deepen the crisis of lack of cash liquidity, calling at the same time to the trend towards using “electronic trading”.
“Our capital”
The food trader, Ahmed Hassan, says that he has a cash amount of 50,000 shekels, all of the 200 shekels.
“All merchants, the methods and brokers do not deal except in the category of 200 shekels, and they refuse to deal with others, because they are the highest value first, and secondly because they are currencies that have not been worn or destroyed until now unlike other groups.”
Accordingly, Hassan expresses his great concern that Israel takes a step to cancel this group, considering that the matter will be “a death sentence for everyone.”
He said that “its cancellation will lead to the collapse of trade and the market of monetary and currencies because they only deal with it … and everyone will go bankrupt.”
Hassan added, “Their goal is to destroy the economy, already destroyed, especially that there is no cash liquidity, and the money was worn.”
Fear and anticipate
The Israeli trend has caused great concern among the citizens in Gaza, especially with the siege intensification, the high prices, the scarcity of goods, and the lack of cash liquidity.
“People do not deal with the 10 -sized category, and most also reject the 20 shekels because they are damaged, and if they cancel the 200 shekels, what will remain?”.
He added, “The situation is bad, the markets collapsed, poverty is exacerbated, the high cost is increasing, and the crossings are closed.
Al -Ghazali added, “They want to destroy the remainder of the collapsed economy. Soon people will die of hunger because even if they find food in the market, they do not have the money to buy it … there will be a complete collapse, suffering and tragedy.”
In turn, Ibrahim Abu Laila says that he and his family members withdraw money from the bank (across the black market) through the category of only 200 shekels, and it is the only category in which merchants and brokers deal with.
“I am afraid to implement this step, there will be a comprehensive collapse, because due to the lack of cash liquidity, all dependence on this category, and all merchants and capital who refuse to deal except through these banknotes,” Abu Laila added to Al -Jazeera Net.
“Everything will collapse, this is a great ruin, who will compensate people for their losses? We pray to God not this happens.”
