Hamas in financial crisis: after the Israeli offensive, the group struggles to pay the fighters and loses key figures of his economic network
While the war continues e Hamas refuses each proposal for the release of the hostages is to face a new emergency in the Gaza Strip: find the funds needed to pay their fighters. In addition, the situation worsened last month, when Israel interrupted the supplies of humanitarian assets directed to the enclave. According to sources of Arab, Israeli and Western intelligence, part of these aid was seized by Hamas and resold to finance their activities. The recent Israeli offensive has hit the group’s financial network hard, killing key figures responsible for the distribution of money and forcing other managers to clandestinity. Among the most relevant operations, the elimination of a Cambiavalute deemed central to the financing system of the reinforced group, as well as several high political officials, including a leading figure: the De facto Prime Minister of Hamas, Ismail Barhoum. A very hard -defined blow by multiple analysts. The consequences have already made themselves felt.
Liquidity crisis in Gaza, the tension is growing against Hamas
Payments to Gaza’s public employees were suspended and many Hamas’ fighters and political officials received only half of the salary, just during the sacred month of Ramadan. According to sources of intelligence, the monthly compensation for a militia in Hamas usually wanders between 200 and 300 dollars. The internal economic crisis is undermining the group’s operational structure and highlights growing organizational difficulties. Hamas, already under military pressure, must now also face a financial deterioration that risks further compromising his holding in front of an increasingly decisive and offensive Israeli strategy. Propaganda is also suffering from it, as confirms us Elisa Garfagnacommunication expert: «Hamas’s propaganda is becoming more aggressive every day, a sign of the growing financial pressure that the group is undergoing in Gaza. Without more convincing narrative arguments and with the rhetoric of the ‘genocide’ and ‘bombarded hospitals’ that is crumbling in the face of the revelations on militia with the UN covi, Hamas seems to focus on a more violent and extremist communication. This desperate strategy could be an attempt to keep your ranks united and maintain external support, trying to mask its weakness on the field and the economic crisis that is undermining its operational capacity. Test would be the imminent events of April 25 in Italy, which in a controversial way combine anti -fascism and anti -med who further risk amplifying this polarization, exploiting the historical memory to convey messages of hatred and delegitimization towards Israel and Jews “.
Qatar’s money does not come pù
At the Wall Street Journal Eyal Ofer Open Source researcher on the Gaza economy said: “Even if they had large quantities of cash available, their ability to distribute it would be very limited at the moment. The typical payment methods of Hamas were the use of a courier who transported cash or the establishment of a distribution point, both options that could have created objectives for Israeli troops. These two things would attract attention ». Before the outbreak of the war, Hamas – who exerts control over the civil government of the Gaza Strip – received monthly transfers of $ 15 million from Qatar. The group had also raised funds from different areas of the world, including West Africa, Southern Asia and the United Kingdom, accumulating estimated reserves in about 500 million dollars. A substantial part of these funds would have been deposited in Turkish banks, according to Western and Arabic sources. With the beginning of the conflict, Israel has imposed severe restrictions on the transfer of cash to Gaza, forcing Hamas – classified by the United States as a terrorist organization – to seek alternative solutions to circumvent the blocks. Among these, according to Palestinian sources and former officials, the theft of about 180 million dollars from branches of the Bank of Palestine and from other local financial institutions.
Hamas hits the population and manages the racket of humanitarian aid
Parallel, sources of Arab, Israeli and Western intelligence report that Hamas would take advantage of the influx of humanitarian and commercial goods to generate new revenues. The group has imposed taxes to local traders, who was customs duties on incoming trucks and seized assets intended for the population, then resold to obtain liquidity. Furthermore, according to what was reported by officials involved, Hamas purchased humanitarian goods abroad using cash and subsequently resold them at exorbitant prices in Gaza, transforming them into funds promptly available to finance their activities. Despite the attempts to get around the restrictions, Hamas was approaching a liquidity crisis before the January fire, which had temporarily allowed the entry of humanitarian aid into the Gaza Strip. According to Israeli and Western sources, that short period had allowed the group to partially replenish their finances. However, this window closed abruptly when, in March, Israel sealed the borders, interrupting the access of humanitarian aid again.
The blockage imposed by Israel ended up in the sights of humanitarian organizations, who fear can aggravate the already dramatic food crisis in the Gaza Strip, where about two million people live. The Israeli Defense Minister, Israel Katzhe reiterated the intention of preventing humanitarian aid from finishing under the control of Hamas, announcing an alternative plan for their sorting through civil partners. According to the Israeli authorities, Hamas’ ability to generate profits from aid pushed the government to review the selection criteria for future shipments. If in the past the checks focused on goods considered at risk for safety, today the army evaluates to block even authorized ones, if they represent an relevant economic source for Hamas. During the ceased the fire, Hamas had prepared distribution points for the payment of salaries, resorting to cash or, in some cases, to basic necessities, according to sources of Arab intelligence. With the resumption of Israeli attacks in March, the distribution has fragmented itself, relying on informal and interpersonal networks, thanks to the clandestinity in which many members of the organization have ended. The cutting of payments makes it increasingly difficult for Hamas to maintain internal cohesion and recruit new levers. In the meantime, while Israel continues to expand its territorial control, a rare wave of popular protests against Hamas emerged in the Gaza strip of Gaza, accused of not being able to end the conflict. According to the analysis of the Wall Street Journal, The growing liquidity crisis is further aggravating the conditions of the civilian population. To Gaza, where it Shekel Israeli It is an official currency, finding cash has become a daily challenge. The displaced people, already forced to look for food, shelter and medicines in a devastated territory, now also struggle to obtain the money necessary to satisfy the primary needs.
Banknotes are repaired in Gaza: the cash crisis pushes to creativity
Before the outbreak of the conflict, the Israeli central bank regularly guaranteed the flow of cash to Gaza. However, for over 18 months, new banknotes have not been introduced in the Enclave. To worsen the situation, many of the 56 banking institutions and of the 91 automatic counters in the area were destroyed or made advertible during the war. Since the beginning of the conflict, humanitarian organizations have transferred tens of millions of dollars to economic aid to the Palestinians, using increasingly widespread electronic payment applications. To this are added the remittances from relatives and friends abroad. However, to convert these cash digital funds, the citizens of Gaza face high commissions: local changes apply rates more than 20%, according to a high Palestinian financial official. It is not clear how much physical currency actually remains in circulation within the enclave. Analysts like Eyal Ofer They estimate that the overall value of cash still available could be around 3 billion dollars. The deficiency is so acute that it gave birth to a sort of artisan industry: repair laboratories where banknotes, often ruined, are washed, reattached with adhesive tape and reimed in the local economic circuit.
