Bank of Israel's $30 Billion Sale to Stabilize Shekel Amid Gaza War
The Bank of Israel plans to sell up to $30 billion in foreign exchange to protect the shekel from collapse during the ongoing Gaza war. The central bank aims to moderate volatility in the shekel exchange rate and ensure the proper functioning of the markets. Additionally, the bank will provide dollar liquidity through SWAP mechanisms of up to $15 billion. Despite the announcement, the shekel weakened over 2% to around 3.92 to the dollar as fighting continued near the Gaza border. The move comes as the shekel has already weakened nearly 10% this year, contributing to inflation and raising concerns of a constitutional crisis.
