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Protesters in Gaza Target Hamas
For the first time in 18 years since Hamas took control, residents of Gaza are voicing their dissent against the organization, facing significant risks in the process, according to reports by Fox News’ Mike Tobin.
Experts have indicated that monthly cash transfers organized by United Nations agencies are inadvertently enabling Hamas by allowing the group to maintain control over financial resources in the region.
Eyal Ofer, an expert on the economic dynamics related to Hamas, noted, “Hamas leverages its authority as the governing body in Gaza to siphon financial benefits from aid meant for civilian use, utilizing apps that remain functional in the area.”
“The organization systematically manipulates the aid framework, largely remaining out of sight, by exerting influence over major traders and criminal organizations to create an informal banking system within Gaza,” Ofer explained.
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Residents of Gaza are attempting to meet their basic needs amidst the destruction found in the Jabalia refugee camp, particularly highlighted on March 3, 2025, as Israel stopped humanitarian aid to the area during Ramadan.
International bodies send substantial funds into the Gaza economy each month. The U.N.’s World Food Programme (WFP) alone transfers around $18.43 million, reaching approximately 82,636 families, with each family receiving an average of $209. Additionally, UNICEF provides about $5 million each month, reaching around 20,000 families.
Shahab Yousef, a local resident, expressed frustration, stating, “I often go to the market where individuals exchange cash for a fee. This transaction typically costs me 20-30%. If I send 1,000 shekels [$271], I ultimately receive just 700 [$190]. For major purchases, I opt for digital payments, but market transactions require cash, leading to losses.”
Nidal Qawasmeh, another Gaza resident, echoed similar sentiments, remarking, “These cash exchange services charge extortionate fees, and it complicates basic family expenses.” He voiced concerns about escalating prices amidst the financial struggle.
Families receive about $270 a month (equivalent to 1,000 New Israeli Shekels), calculated as roughly 80% of the Survival Minimum Expenditure Basket according to UNICEF’s statements. Other organizations like UNFPA contribute as well, bringing the overall monthly figure to approximately $39.66 million, aiding around 60% of Gaza’s households.
Despite the substantial aid directed to more than half of Gaza’s population, the region still faces dire food insecurity and soaring inflation rates of 91% and 118% respectively as of January 2024. The complexity of fund circulation within Gaza heavily influences this situation. “Hamas exerts control over much of the cash flows into Gaza, and recipients often face exorbitant fees when trying to use funds received through mobile platforms,” Ofer elaborated. “Those receiving funds via mobile apps usually need to convert them into physical cash to make everyday purchases, which incurs significant fees, often to intermediaries aligned with Hamas or its affiliates.”
The foreign minister of Israel, Gideon Sa’ar, has warned about Hamas’s economic power stemming from substantial cash reserves, which are utilized for salaries and subsequently reclaimed through merchant taxes. In correspondence with the governor of the Bank of Israel, he urged the discontinuation of 200-shekel bills circulated in Gaza, arguing that this would cripple Hamas’s financial operations. However, the Bank declined the proposal, citing technical challenges associated with executing it.
Research by Ofer indicated that the fees for cash transactions can range between 20% and 35%, leading recipients to lose a large percentage of their aid just to access it. “In videos from Gaza, you can observe merchants not accepting app-based funds, necessitating customers to convert their money to cash, subsequently losing at least 20%,” he stated.
Peter Gallo, an international lawyer and former investigator at the U.N., remarked, “If this is something an investigator in Israel can ascertain, then the aid organizations are either aware or should be aware. These fees amount to extortion, a practice some have delicately termed a ‘revolutionary tax.’ Aid agencies might argue they had no alternative, but honesty in this situation would have been preferable.”
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As daily life continues under challenging circumstances in Jabalia, Gaza, residents navigate their needs amid ongoing conflict. A UNICEF spokesperson acknowledged the ongoing cash liquidity crisis in Gaza, attributing it to the disruptions in the banking system due to conflict.
“Recognizing this ongoing crisis, UNICEF has launched fully digital cash payment solutions through e-wallets, removing the need for physical money. Beneficiaries can now purchase essential items like food and medicine without dealing with cash,” the spokesperson stated.
The adoption of digital e-wallets is facilitated through an accessible app, which works on the basic smartphone models. This initiative aims to eliminate the need for cash conversion, thus preventing additional fees. UNICEF confirmed that the design and implementation of this cash program adhere to the highest principles of neutrality and impartiality.
The spokesperson further elaborated, “Close to the entire population of Gaza, totaling more than 1.8 million people, are facing extreme food insecurity, half of whom are children. This situation prompts an alarming increase in acute malnutrition among minors. The humanitarian cash transfer program is critical in maintaining children’s access to essential survival items amidst the ongoing conflict.” UNICEF allocates an average of around $5 million monthly for these cash transfers, aimed at helping approximately 20,000 families, although this amount is deemed insufficient for substantial economic impact.
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Despite repeated inquiries, the World Food Programme declined to comment on these findings.
“Inaction is unacceptable,” Gallo concluded. “The U.N. Security Council has been tackling issues of terrorist financing since 2001, yet aid organizations seem to disregard the reality that Hamas profits from this financial flow, in direct opposition to global efforts to curtail terrorist financing.”
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