War changes the money map in Gaza.. deposits rise and purchasing power declines

A study by researcher Dr. Seif al-Din Yousef Awda documents an economic paradox in Gaza during the war: a record increase in customer deposits at a rate of $142.7 million per month, compared to a collapse in consumption and an 82% decline in purchasing power, with prices rising by 290.7%. The study warns against interpreting the rise in deposits as an indicator of improved household financial conditions.

A study by researcher Dr. Seif al-Din Yousef Awda, published by the Arab Center for Research and Policy Studies, documents a sharp economic paradox in the Gaza Strip during the war between 2023 and 2025. Customer deposits recorded a record increase with a monthly growth rate of $142.7 million, compared to $6.7 million before the war, and an annual growth rate of 72.4%. In contrast, real household consumption spending collapsed by 82%, from $2.808 billion in 2022 to $506.2 million in 2025, while the average consumer price index jumped by 290.7%. The increase is concentrated in deposits of individuals ($2.716 billion) and companies ($653.4 million). The study attributes this to the continued flow of salaries, aid, and transfers into bank accounts, against the backdrop of a decline in the ability to withdraw cash. The study estimates the minimum financial injection channels at about $2.626 billion. The study warns against interpreting the rise in deposits as an indicator of improved household financial conditions, noting that part of the funds settled in accounts linked to commercial activities and the war economy. The study highlights the phenomenon of 'cashing' as a key mechanism, where citizens are forced to convert their balances into cash from liquidity holders at high commissions, which it describes as a form of rent. The study links financial transformations to monopoly and market control, concluding that the increase in deposits reflects a change in the paths of funds and a redistribution of income and wealth within the war economy, not a real accumulation of wealth.