Fighters from the Islamic State group load a van with parts that they said was a US drone that crashed into a communications tower in Raqqa early on September 23, 2014.

Faced with a cash shortage in its so-called caliphate, the Daesh has slashed salaries across the region, asked Raqqa residents to pay utility bills in black market American dollars, and is now releasing detainees for a price of $500 a person.

The extremists who once bragged about minting their own currency are having a hard time meeting expenses, thanks to coalition airstrikes and other measures that have eroded millions from their finances since last fall. Having built up loyalty among militants with good salaries and honeymoon and baby bonuses, the group has stopped providing even the smaller perks: Free energy drinks and Snickers bars.

Necessities are dwindling in its urban centers, leading to shortages and widespread inflation, according to exiles and those still suffering under its rule. Interviews gathered over several weeks included three exiles with networks of family and acquaintances still in the group’s stronghold in Raqqa, residents in Mosul, and analysts who say Daesh is turning to alternative funding streams, including in Libya.

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