Erosion of purchasing power of salaries.. Decline of the dollar doubles the burdens of families in Gaza

The effects of the decline in the dollar exchange rate against the shekel in the Gaza Strip are no longer confined to economic figures, but have extended to deeply impact the living conditions of thousands of families. These families primarily rely on salaries, aid, and external financial transfers denominated in the American currency. With the ongoing war and the deterioration of income sources, the actual value of these funds is eroding against the requirements of the local market, which deals in shekels.

Citizen Wael Al-Hosari recounts the suffering of his family, which used to depend on the income of his wife and daughter from working in international institutions. The decline in the exchange rate has led to an increasing inability to cover basic needs. Al-Hosari explained that the family was forced to forcibly reorder its priorities, by reducing expenses to a minimum and focusing only on food and medicine, while postponing the purchase of any other necessities that were considered normal before the crisis.

In another humanitarian context, the story of child Imran emerges, who needs continuous physical therapy sessions due to an injury he sustained during the war. His mother, Sumaya Salman, says that a donor from outside the Strip covers the treatment expenses through dollar transfers. However, the decline in the exchange rate has reduced the family's ability to provide full sessions, transportation, and medicines, threatening a health relapse for the injured child.

For his part, economic analyst Ahmed Abu Qamar confirmed that the decline of the dollar has direct effects on a wide segment of Palestinians, especially given the local market's reliance on three main currencies. He pointed out that this decline leads to the erosion of personal savings and weakens the purchasing power of employees who receive their salaries in hard currency, especially with the insane rise in commodity prices within the Strip.

Abu Qamar explained that the degree of impact varies among social groups, with the greatest harm falling on families awaiting remittances from abroad or who have dollar-denominated bank savings. In contrast, families who receive their income in shekels and have dollar-denominated obligations may benefit, but the overall framework indicates a decrease in real income and an increase in economic pressures on a society already exhausted by the ravages of war.

In light of these fluctuations, economic experts advise the necessity of diversifying savings and not relying on a single currency to avoid sudden losses. The option of distributing savings among the dollar, shekel, and gold remains the most effective way to reduce risks, although employees who receive their salaries in dollars find themselves with very limited options to face this difficult living reality.

The decline of the dollar was not just a change in currency prices, but turned into a daily burden that affected the standard of living and family stability.