Foreign Minister Gideon Sa'ar has submitted a request to Prof. Amir Yaron, Governor of the Bank of Israel, to carry out an extraordinary economic move and revoke the legal tender status of certain 200 Shekel bills.
The goal is to undermine Hamas’ economic power base in the Gaza Strip. Sa'ar explained that Hamas relies heavily on cash circulating within Gaza, estimated at billions of shekels.
According to Sa'ar, Hamas uses these bills to pay its operatives and collect “taxes” from merchants. According to a team of experts, who worked on a voluntary basis, about 80% of the amount in Gaza is held in 200 shekel bills.
“Denying the financing capacity of terrorist organizations in general and Hamas, in particular, is a vital pillar of the war effort,” Sa'ar wrote.
Sa'ar added that canceling a certain series of 200 shekel bills, which were transferred to Gaza in recent years, could deal a "strategic economic blow" to Hamas, disrupting its governance abilities and recruitment mechanisms.