Bank of Israel Sells $30 Billion Of Forex To Stabilize Shekel

The Bank of Israel announced on Monday that it will sell up to $30 billion of foreign currency in the open market, marking the central bank's first-ever sale of foreign exchange.

Following the announcement, the shekel fell 2.2% against the dollar, reaching 3.924, its lowest level since 2016, before stabilizing.

This move aims to maintain stability during the ongoing conflict with Palestinian militants in Gaza, as reported by Steven Scheer and Ari Rabinovich for Reuters.

Following the announcement, the shekel fell 2.2% against the dollar, reaching 3.924, its lowest level since 2016, before stabilizing.

In a statement, the bank stated, "The bank will operate in the market during the coming period to moderate volatility in the shekel exchange rate and provide the necessary liquidity for the continued proper functioning of the markets."

The central bank also indicated that it would provide liquidity through SWAP mechanisms in the market, with a potential allocation of up to $15 billion.

The bank emphasized its commitment to monitoring developments and taking necessary actions using available tools.

Notably, the shekel had already weakened by 10% against the US dollar in 2023, partly due to the government's judicial overhaul plan, which significantly reduced foreign investment, Emily Rose also reported for Reuters.

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