The future of money in Palestine
Billions of dollars are expected to be pledged for Gaza’s reconstruction. But without a trusted way to move, monitor, and spend that money, funding alone will not rebuild the Palestinian economy.
Gaza’s reconstruction requires secure, efficient channels to move capital at scale. Estimates put reconstruction needs above $70 billion, yet 93 percent of bank branches and 88 percent of microfinance institutions are inoperable. Liquidity shortages have pushed Gazans toward informal intermediaries charging high fees, while the wider economy remains constrained by withheld clearance revenues, shekel-transfer restrictions, and fragile correspondent banking links with Israel.
The central challenge is ensuring reconstruction funds reach households, workers, businesses, and public institutions without excessive costs, political interference, or diversion. Multiple currencies circulate in the Palestinian economy, including US dollars, Israeli shekels, and unregulated cryptocurrencies, adding to instability and increasing exposure to terrorist exploitation. Hamas continues to resist disarmament, control supply chains and money-changing services, and use cryptocurrencies and fiat funds to consolidate influence. Without a reliable system for transferring funds, reconstruction capital will be lost in transit, undermining growth, Palestinian Monetary Authority autonomy, and long-term stability.
This series examines the financial and monetary policies needed for Gaza’s reconstruction and beyond. It seeks to answer three key questions: Which currency best serves the Palestinian economy, given that reconstruction funds are likely to arrive in US dollars while daily commerce still relies on the shekel? How can Gaza build a closed-loop digital financial system based on reliable telecommunications, device access, digital IDs, and a civil registry? And could a dollar-backed stablecoin provide a secure architecture for reconstruction payments?
Taken together, the issue briefs below outline a prospective path forward: a monetary framework less exposed to political disruption, a secure digital system for Palestinian identity and transactions, and a regulated dollar-backed payment mechanism to move reconstruction capital to Gazans. The result is a practical blueprint for a financial system that funders can trust, Palestinian institutions can sustain, and Gazans can rely on to exercise greater economic agency.
—Sami Abu Yousef is the chief executive officer of the Ramallah Investment Group.
—Avia Liberman is an economic analyst and a junior fellow at Realign for Palestine, a project of the Atlantic Council’s Rafik Hariri Center and Middle East programs.
—Melanie Robbins is the deputy director of Realign for Palestine.
Read our expert analysis
Explore the program
The Realign For Palestine project at the Atlantic Council aims to amplify pragmatic voices who courageously advocate for Palestinian statehood and self-determination, unequivocally reject violence, terrorism, and extremism and acknowledge a two-nation solution, including Israel’s right to exist in safety. Decades of violent conflict have proven that all who support Palestinians must realign our words and actions to finally achieve lasting peace.
Realign For Palestine fosters innovative thinking, advocacy, and action toward regional peace, security, and nation-building of two homes for two people.
Image: Palestinians inspect a site of an Israeli strike on a mosque. Source: REUTERS/Mahmoud Issa.