Bank of Israel Sells $30 Billion in Foreign Reserves as Shekel Hits 8-Year Low

The Bank of Israel has announced plans to sell up to $30 billion in foreign reserves to support the Israeli shekel, which has weakened to its lowest level in seven years following the recent deadly incursion by Hamas militants. The central bank aims to moderate volatility in the shekel exchange rate and ensure the proper functioning of markets. In addition to the reserve sales, the bank will provide liquidity through SWAP mechanisms. The Israeli economy is expected to recover quickly unless there is a physical attack by Iran, according to Zvi Eckstein, former deputy governor at the Bank of Israel.