The IDF’s Arabic spokesman issued an unusual warning to Gaza residents on Monday: they’re caught in the middle of a large-scale economic scam run by Hamas. In an official statement to residents, the IDF said they’re being defrauded and it’s time to wake up. The military explained that the Bank of Israel, which issues the banknotes in their hands, recommends exchanging old bills for new ones. Residents were warned that anyone holding old bills is taking enormous financial risk—soon the notes will be worthless and civilians will be left with nothing, while Hamas exploits the crisis in the Strip to dump its invalid currency.
2+The IDF’s direct appeal comes amid reports of severe deterioration in the value of worn and old Israeli shekel banknotes circulating in the Strip, and attempts by Hamas operatives to trade them on the black market or pass them to unsuspecting civilians in exchange for goods and services. Though Gaza is controlled by Hamas, the shekel is the primary and nearly exclusive currency used for daily commerce, salary payments, and purchasing basic goods in the Strip. Due to the closure and the war, the supply of fresh cash from the Bank of Israel to Gaza has been halted or dramatically limited, resulting in old, torn, and heavily worn banknotes circulating in the Strip whose quality has severely deteriorated.
2+Meanwhile, the Bank of Israel periodically updates its banknote series and removes old or damaged bills from circulation. Holders who don’t exchange them at authorized banks within the defined timeframe face a situation where the bills lose their status as legal tender.
2+The IDF Arabic spokesman’s warning is designed to thwart Hamas attempts to use the invalid banknotes to finance its operations or shift economic losses onto the Gazan public. It’s part of a broader psychological and economic effort to increase public pressure on Hamas inside the Strip and prevent the organization from exploiting the humanitarian crisis for financial gain.