HRF’s Weekly Financial Freedom Report #43

Kuwait | Mandates Biometric Data for Access to Financial Accounts

The Central Bank of Kuwait is mandating citizens complete biometric fingerprinting by Sept. 30, or the regime will revoke access to bank accounts, assets, and government services. The mandate will roll out in four phases: first, citizens will receive reminder alerts, followed by the suspension of their electronic services and deactivation of their bank cards. By Dec. 1, all accounts will be frozen for those who don’t comply. Access to shares, funds, portfolios, and other financial assets will also be blocked. Loan installments and government benefit deductions, however, will continue to be withdrawn even after accounts are frozen. This forceful and unchecked access to biometric data risks privacy abuses and could be used to restrict citizens’ freedom of movement, expression, and financial activity. As Kuwait siloes its citizens in an exploitative financial system, nearly one million citizens may find themselves without access to their savings and assets.

Egypt | Rising Costs and Repression Deepen Financial Struggles

The Egyptian regime hiked the cost of gas canisters by 50% overnight, worsening the cost-of-living crisis for half of Egyptian households that depend on them. Canisters have increased in price by 1,775% over the last decade. Inflation now sits above 26% per annum following price increases in fuel, electricity, and bread earlier this year. While citizens grapple with rising prices, the regime is investing heavily in the military and secret police and is passing a new draconian law that strips away basic legal protections for individuals and activists. The new law would allow warrantless searches, limit lawyers’ access to clients, and restrict the monitoring of trials. Civil liberties groups warn it “will destroy foundational due process protections and usher in one of the most dystopian criminal justice frameworks in Egypt’s modern history.” Rather than address the economic plight of its people, Egypt’s leadership normalizes violations of due process under the guise of reform.

Zimbabwe | New ZiG Currency Faces First Official Devaluation

Zimbabwe’s Reserve Bank devalued its ZiG currency by 44%, dropping its official rate from 13.6 ZiG per dollar to 24.4 ZiG. This move aligns it closer to the parallel market, where the currency has already lost 80% of its value. Zimbabwe’s legacy of hyperinflation has re-shattered public confidence in the state’s ability to effectively manage the currency, and ZiG is no exception. This uncertainty, paired with liquidity issues and high demand for foreign currency, is reaccelerating inflation, pushing up Zimbabwe’s monthly inflation from 1.4% in August to 5.8% in September. Zimbabwe’s annual inflation stands at 57.5%. With nearly half of Zimbabweans living in extreme poverty — on less than $3.20 per day — further increases in the cost of living can mean the difference between food on the table or not.

China | Announces One-Time Cash Handout to Poor

The Chinese Communist Party (CCP) announced a one-time cash handout for those in poverty, which was scheduled for Oct. 1. The exact value of the handouts is unknown, but the policy is part of a broader plan to address China’s struggling economy, where the regime is also employing a 1 trillion yuan stimulus package and measures to support property markets. The cash subsidies will be distributed to disadvantaged groups such as orphans and the poor to demonstrate the “concern and care” of the CCP. Temporary financial relief won’t distract citizens for too long. This temporary measure creates a false narrative of relief and progress, masking a totalitarian economic system on the brink of collapse. It’s no coincidence that the CCP has been so restrictive against citizen Bitcoin use: it wants to trap citizens in a melting currency and close all the exits.

Israel | Tightens Financial Control with Push for Cashless Society and Digital Shekel

Israel plans to remove 200 shekel banknotes from circulation, which account for 80% of the banknotes held by the public. This proposed mandate is part of Israel’s plan to abolish cash entirely over the next few years and coincides with their development of a central bank digital currency (CBDC), the Digital Shekel. Alongside this, a proposed ban on precious metals, such as silver and gold, would restrict alternative forms of money and wealth preservation. To enforce these measures, the Israeli government plans to use artificial intelligence (AI) to monitor, collaborate with financial authorities (such as the Tax and Anti-Money Laundering Authorities and the police), and enhance oversight of “non-banking financial entities.” The nearly 3 million people who live under the West Bank under the Abbas regime will also be affected by this, as the Palestinian Authority doesn’t issue its own currency, and Palestinians are forced to use the shekel.

Tunisia | Strips Administrative Court of Ability to Rule on Election Disputes

President Kais Saied took another decisive step to solidify control over Tunisia by stripping the administrative court of its authority to rule on electoral disputes just days before the presidential election. This move removes the last independent check on his power, ensuring his grip on the election after disqualifying opposition candidates and jailing one of the remaining contenders, Ayachi Zammel, for 12 years. With only himself and his ally, Zouhair Maghzaoui, on the ballot and the administrative court stripped of authority, Saied has all but secured re-election. “We are witnessing the capture of the state days before the vote,” political activist Chaima Issa said, adding, “We are at the peak of absurdity and one-man rule.” Meanwhile, Tunisians face soaring prices, rising debt, and high unemployment. With opposition silenced and financial conditions worsening, Tunisians are trapped in a cycle of political repression and economic hardship.