Until 3 weeks ago, merchants in the Gaza Strip were still receiving cash from Gazans, even though the majority of them were worn out banknotes, before they gradually stopped more than 10 days ago, and they tightened their positions in the past four days, and used applications and electronic wallets.
This coincided with Israel's intensification of targeting and assassinating Hamas financial officials over the past weeks, and it turned out that among them were some of those responsible for transferring salaries to members of the movement.
According to Hamas employees, the majority of them, whether from the government sector or the military arm (Al-Qassam Brigades), receive their salaries in cash. More than one source in Hamas spoke to Asharq Al-Awsat that government employees receive part of their salaries approximately every 100 days, amounting to only 1,000 shekels (a dollar equals 3.05 shekels), and often in obsolete currencies, while others (Qassam activists) receive their salaries every 40 or 50 days, amounting to about 60 percent of the total salary, and no less than 1,200 shekels. Almost good coins.
Market dealers in Gaza told Asharq Al-Awsat that, during the recent period, some merchants had tended to accept cash from individuals and transfer them electronically, in exchange for a commission of up to 10 percent through applications and electronic wallets.
This crisis represents a situation opposite to what was the situation during the peak years of the war that began in October 2023, when Gazans struggled to transfer their money in wallets to “cash,” and commissions started from 10 percent and sometimes reached 60 percent, before the scope of electronic transactions expanded. Last August, an Israeli army spokeswoman issued a warning to the Palestinians in the Gaza Strip against canceling dealing with a certain category of old banknotes designated by the letter “B” of the shekel, in a move to stifle the Hamas movement economically.
What do we do with old money?
In an interview with Asharq Al-Awsat, Ahmed Al-Najjar (39 years old), an employee in the Hamas government in Gaza, asked angrily about the fate of the obsolete money they were receiving, and said: “How long will it remain like this?” We are the ones who pay the price with our lives, and we find no one to stand with us. There are no officials, no merchants, and others who fight us in various ways to achieve huge profits and gains.”
Since October 7, 2023, Israel has prevented the entry of any cash into Gaza, at a time when banks were subjected to major thefts during the war, while the Israeli security authorities sought to impose conditions on Gazan merchants after they allowed the entry of goods from time to time, for payment via electronic applications in a move that was aimed at besieging the Hamas movement.
With the new reality, it appears that the Hamas movement is actually facing a major crisis regarding the availability of cash among its activists and employees, in conjunction with repeated assassinations of funding sources, money changers, and prominent activists in its financial system, something that has been observed more over the past few days.
Hamas warns merchants
The current reality prompted the Hamas police force in Gaza to issue a general circular in which it warned shop owners and others not to deal in cash, stressing the necessity of receiving cash from citizens of all kinds, new and old, provided that it is not damaged. She stated that she will begin her duties to follow up on everyone’s commitment to this, and will take strict legal measures against violators, calling on merchants not to create crises that would restrict the population.
An official Hamas police source told Asharq Al-Awsat that there is “a strict decision to take strict measures against any merchants who refuse to deal with banknotes.” He promised, “The matter is not only related to government employees or movement activists, but also to the families of orphans, war victims, the wounded, and prisoners who benefit financially from various relief institutions, and cannot find anyone to take cash from them.”
Media outlets affiliated with the Hamas movement inside the Gaza Strip did not hesitate to launch a media campaign against banks affiliated with the Monetary Authority of the Palestinian government in Ramallah, accusing them of encouraging merchants to move to electronic payment only, and of working to close hundreds of bank accounts for residents in the Strip, which some banks have denied more than once, and renewed their denial a few days ago, stressing that there are no decisions to close any accounts.
App scare campaign
This led to the spread of an unprecedented campaign across social media warnings against wasting cash in favor of banking applications and other electronic wallets, amid fear campaigns of an imminent new war between Iran and the United States that will affect the entire region again, which could lead to the owners of electronic funds losing their money. This was denied by an official banking source, confirming that the funds within the banks will remain preserved, and that there is a transition to electronic work.
The source told Asharq Al-Awsat that what is happening is updating the data naturally, and determining the nature of the activities of the holders of these accounts, in light of fears of the presence of money being laundered in one way or another, indicating that the banks have instructions to facilitate enabling Palestinians to own accounts for financial inclusion, and this is also happening in the West Bank, and not only in the Gaza Strip.
In recent days, Israel assassinated Jabr Moqbel, the owner of an exchange shop and a prominent activist in the “Al-Qassam Brigades” in Gaza City, after targeting him inside a vehicle in Deir al-Balah in the middle of the Gaza Strip. Muhammad Abu Alwan, a financial official in Hamas, was also assassinated during a raid that targeted him in Khan Yunis in the southern Gaza Strip. On Sunday, an Islamic Jihad financial official was seriously injured in an assassination attempt targeting him west of Gaza City.
The Israeli army said in a statement, a few days ago, that throughout the war, it liquidated 16 prominent economic activists who were involved in transferring money and worked to finance the military activity of the Hamas movement. He stated that all the activists who were liquidated managed money transfers worth more than one billion dollars, through a network that includes dozens of money changers in Türkiye and the Gaza Strip.
He explained that he, along with the General Security Service (Shin Bet), are focusing their efforts on harming Hamas' financing capabilities and preventing the rehabilitation of its infrastructure and military capabilities.
In light of the Israeli talk about moving to a “new phase” of the occupation in southern Lebanon, military operations have taken an escalatory turn in recent hours, with the introduction of attack helicopters and tanks again, along with military aviation, artillery, and sweeping with heavy weapons.
Between the raids, bombing operations, and movements on the ground, the following question arises in Lebanon: Is the Israeli escalation limited to raising the level of military pressure, or does it pave the way for a change in the nature of operations and occupation in the south?
While the new date for the Lebanese-Israeli negotiation session has not yet been set, the head of the Lebanese negotiator Simon Karam is expected to visit the Vatican, where he will meet Secretary of State Cardinal Pietro Parolin and Secretary of State Paul Richard Gallagher, to discuss the negotiations file and the role that the Vatican can play in supporting this path, according to what informed sources told Asharq Al-Awsat.
The visit comes as a follow-up to what President Joseph Aoun discussed during his recent visit to Rome, especially with regard to efforts aimed at supporting Lebanon and advancing the course of negotiations.
Shells, fires, and blown up houses
On the ground, the Israeli attacks continued on Sunday in the south, as an Apache helicopter raided a commercial center on the Shukin-Mifidoun road in the Nabatiyeh area, while sweeping operations with heavy machine guns targeted the towns of Beit Yahoun, Sarbin, and Wadi Zebqin.
The ambulance team survived a raid that targeted the building while members were in the area to conduct a field inspection after a previous raid, which led to damage to shops and residential apartments in the targeted building.
An Israeli Merkava tank also targeted the town of Hadada with four shells, before the Israeli forces moved towards one of the centers in the town, where they started a fire in the place. On Sunday morning, the Israeli army blew up a number of homes in the town of Mansouri in southern Lebanon.
The Israeli army announced that it attacked Hezbollah targets in southern Lebanon, and said that this came in response to the launch of a bomb-laden drone towards its forces last night.
Shortly after midnight on Saturday - Sunday, Israeli warplanes launched a series of raids targeting the town of Nabatiyeh Al-Fawqa with two raids, the outskirts of Kafr Tibnit, and the town of Mifdoun, where a house was completely destroyed.
Doha Kafr Rumman was also subjected to concentrated artillery bombardment, which also affected Wadi Zibqin, the outskirts of Mazraat Al-Shumariya, and the town of Al-Qusayr, while the Israeli army carried out a sweep with heavy machine guns towards the towns of Beit Yahoun, Sarbin, and Wadi Zibqin.
What is prominent in these developments is Israel’s use of attack helicopters, most notably the Apache, in conjunction with tanks, artillery shelling, and raids from warplanes, in addition to movements on the ground and house-bombing operations, which reflects a diverse use of fire means in more than one axis, in light of Israeli talk about a change in the nature of operations.
A new stage or installing sites?
In his reading of what is happening in the past hours, retired Brigadier General and military expert Hassan Jouni believes that the recent Israeli operations in southern Lebanon, in which Merkava tanks and helicopters were used, may have been in the context of routine operations that were previously carried out, or within the framework of completing and ending operations related to the Mansouri area, especially since the Israeli army announced that it was close to ending the phase whose title was the destruction of Hezbollah’s infrastructure in the region.
Therefore, the main question after the end of this stage revolves around the nature of the next Israeli step, according to what Johnny believes in an interview with Asharq Al-Awsat.
He says: “According to Israeli information and positions, there is talk about repositioning the Israeli army in fixed centers and locations that are being prepared, which indicates a trend towards stabilizing the Israeli military presence and its defensive positions in the buffer zone and on the border of the yellow line, which may lead to some kind of stability in the form of Israeli deployment in the region.”
Johnny continues: “However, the operational performance of the Israeli army, especially what happened on Saturday with a focus on the areas of Jabal al-Rayhan and its surroundings, Jabal Safi and Sujad, raises worrying indicators about the possibility of starting military action in the Iqlim al-Tuffah area, which is geographically located north of Ali al-Tahir.”
Iqlim al-Tuffah is Hezbollah's last logistical area
Johnny points out that “Iqlim al-Tuffah is historically considered one of the last areas in southern Lebanon that includes logistical bases for Hezbollah, which raises a question about whether there is an Israeli decision to continue operations and expand towards this region, and whether yesterday’s movements constitute preliminary indicators of preparation for this approach, or whether they fall within the framework of repositioning and stabilizing defensive positions.”
Hence, Johnny confirms that the next few days will be sufficient to clarify the path that Israeli operations in southern Lebanon will take.
On Saturday, artillery shelling was recorded in the Wadi Al-Saluki area - the vicinity of the town of Shaqra, and the eastern outskirts of Zawtar. A series of violent raids also targeted Al-Jabal Al-Rafi’i and Al-Rayhan between Iqlim Al-Tuffah and the Jezzine District. Three raids were monitored on the outskirts of the town of Sajad, carried out with concussion missiles, the echo of which reached Al-Zahrani.
While the federal government in Baghdad is preparing to celebrate next Wednesday, what it describes as “Sovereignty Day,” which marks the withdrawal of the “International Coalition” forces from Iraq, the majority of Kurdish leaders, especially in Erbil, the capital of the region, express strong fears of this withdrawal.
On Sunday, the media office of the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, issued an explanatory statement regarding the report published in the Financial Times, which included phrases attributed to Barzani in which he described the American withdrawal as “shameful” and that it would “leave Washington’s Kurdish allies defenseless.”
Despite the different tone in the statement compared to what was reported in the newspaper, it did not go beyond fears that the United States of America, which leads the “international coalition,” would withdraw from Iraq by September 30 of this year.
The statement from Barzani’s office said, “The published report did not seek professional accuracy and objectivity in conveying his statements as they were stated in text. Rather, the author of the report deliberately inserted personal conclusions and interpretations that overshadowed the truth of the stated contents.”
Regarding the position of the region and its prime minister, the statement stated that “the withdrawal of American forces and international coalition forces from Iraq comes at a very sensitive time, as the Kurdistan region has been subjected to more than a thousand missile attacks and drone attacks.” In reference to the attacks launched by Iran and its armed factions in Iraq on the region during the past months.
Barzani believes that “leaving the Kurdistan region exposed without providing any defensive systems to protect it is a matter of concern.”
He added, "The continued state of security instability in Iraq constitutes a clear threat to the foundations of the federal system."
The statement expressed, “The region is proud of its close relations with the United States, and that it is conducting continuous dialogues and communications with officials in the Islamic Republic of Iran. We have repeatedly reaffirmed that the Kurdistan Region is not a party to any war or conflict.”
He pointed out that “the presence of Iranian opposition forces in Iraq and the Kurdistan region is not the result of the moment, but rather an extension of many years whose roots go back to the era of the previous regime.”
This is the pretext used by Iran to launch its attacks on the region.
In contrast to the celebrations held by Baghdad on the day of withdrawal, which suspended official working hours for four days on this occasion, Barzani’s statement did not contain any words welcoming that withdrawal, but he affirmed his support for the efforts of Prime Minister Ali al-Zaidi “aimed at combating corruption, disarming the militias, and settling the outstanding issues between Erbil and Baghdad based on constitutional frameworks.”
Well-founded fears
Researcher and consultant Kifah Mahmoud believes that the fears expressed by Kurdish leaders are “justified” given the range of risks associated with the withdrawal of America and the international coalition from Iraq, and among those fears is that “ISIS has not ended, as it still has sleeper cells in very sensitive areas, whether in the vicinity of the Kurdistan region or Baghdad, as well as in Anbar, Mosul, and Tikrit.” These cells move from time to time and carry out some operations announced by Baghdad or the Peshmerga forces.”
In an interview with Asharq Al-Awsat, Mahmoud believes that “the American withdrawal will encourage these cells to move, and will give them more space for activity.” Especially since the Iraqi air defense system has not been completed yet, and the monitoring and reconnaissance system still needs to be completed. We should not forget that the United States relied on satellites, spy planes, and other reconnaissance means to monitor the movements of terrorists in Iraq and provide the necessary information to the Iraqi forces.”
In addition, Mahmoud believes that “the Iraqi military system has not yet reached the level that qualifies it to fully protect the country. There are still shortcomings at the level of armament, equipment, and integration of military ranks, and evidence of this is the state of fragmentation and the presence of multiple armed factions and militias.”
