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Source: https://jcpa.org/the-economy-of-hamas-and-how-israel-should-deal-with-it/
The Economy of Hamas and How Israel Should Deal with It
(Jerusalem Center for Security and Foreign Affairs) Eliyahu Haddad - Hamas operates a billion-dollar economy that exists largely because of Israel's direct participation in Gaza's monetary system, creating a self-defeating arrangement that transforms Israel from adversary into inadvertent sponsor. This wealth flows almost entirely through Israeli-controlled financial channels, denominated in Israeli currency, and facilitated by Israeli banking infrastructure. Hamas's economic success stems from its complete integration into Israel's monetary sphere through the New Israeli Shekel (NIS). Gaza lacks sovereign currency and operates as a cash economy where 90-95% of all transactions occur in Israeli Shekels. Until October 7, 2023, the Bank of Israel exchanged worn Israeli banknotes for new ones for banks operating in Gaza. This service enabled Hamas to maintain the currency liquidity necessary for its operations. The writer is a serial entrepreneur and investment professional specializing in disruptive technologies and financial analysis.