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Shekel

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economy2 years ago•3 min saved

Bank of Israel sells $30 billion in forex to stabilize shekel during Gaza war

The Bank of Israel has announced its first-ever sale of foreign currency, up to $30 billion, in an effort to stabilize the shekel amid the ongoing war with Palestinian militants in Gaza. The shekel has already weakened by 10% this year due to political turmoil, and the announcement caused it to fall 2.8% against the dollar. The central bank aims to decrease market uncertainty and ensure regular market activity. It also plans to provide liquidity through swap mechanisms. Despite expectations of a weaker shekel in the medium term, economists do not anticipate sustained bouts of shekel weakness. Israeli stock and bond prices rebounded after a 7% slide, while government bond prices were mixed. Israel's forex reserves, amounting to over $200 billion, provide a strong position for the country.

via Reuters|

#bank-of-israel #economy #forex

finance2 years ago•2 min saved

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.

via The Times of Israel|

#bank-of-israel #dollar-liquidity #finance

finance2 years ago•2 min saved

Bank of Israel Governor: Currency Intervention Only Needed in Case of Market Failures

Bank of Israel Governor Amir Yaron stated that currency intervention to support the weaker shekel will only be considered if there are market failures. The central bank recently kept benchmark interest rates steady at 4.75% but hinted at potential rate hikes to combat inflation. The shekel has depreciated following new legislation on the Supreme Court, sparking protests. Yaron believes that market forces should dictate the shekel's value, but if there are significant movements or market failures, the central bank has the tools to intervene. The bank expects inflation to return to target levels in the first quarter of next year but remains vigilant and ready to raise rates if necessary.

via CNBC|

#bank-of-israel #currency-intervention #finance

finance2 years ago•3 min saved

Israeli officials hint at military action against Iran's nuclear program.

The shekel fell to its lowest level in years against the dollar, reaching NIS 3.73, after IDF Chief of Staff Herzi Halevi warned of a possible war with Iran. The shekel has been on a general downward trend since a hardline government took power in January, and the passage of the government's first budget for 2023 and 2024 is expected to further weaken the currency. A weaker shekel is expected to raise the price of imported goods and travel abroad while also pushing up prices at the gas pump.

via The Times of Israel|

#budget #dollar #finance