Israel-Gaza Conflict: Bank of Israel to sell $30 billion of forex to stabilise shekel amid war
Nifty 50, Sensex decline on Israel-Hamas war: 5 factors that weigh on market sentiment In a released statement, the central bank also disclosed its commitment to providing liquidity through SWAP mechanisms, with an allocated amount of up to $15 billion. It emphasised ongoing vigilance, stating that it will monitor developments across all markets and employ available tools as deemed necessary. Prior to the announcement, the shekel had experienced a decline of over 2 percent, reaching a more than 7-1/2 year low of 3.92 per dollar, the report added.
Currently, the shekel is positioned at a rate of 3.86, reflecting a decrease of 0.6 percent, it said. Also Read: ONGC share price gains as crude prices surge on Israel-Hamas war The shekel had already exhibited weakness, registering a 10 percent decline against the United States currency in 2023. This decline was primarily attributed to the government's judicial overhaul plan, which significantly restricted foreign investment, Reuters said.
Accumulating forex reserves exceeding $200 billion, Israel has acquired a substantial amount through forex purchases since 2008. This strategy aimed to prevent the shekel from strengthening excessively, safeguarding exporters, especially amidst the surge in foreign inflows to the country's tech sector. The most recent intervention by the bank occurred in January 2022.
Also Read: Gold, silver price jumps amid rising Israel Palenstine conflict. Opportunity to buy? In a statement last month, Bank of Israel Governor Amir Yaron informed Reuters that despite the notable depreciation of the shekel, contributing to an increase in inflation, there was no requirement for intervention as there were no apparent market failures. In the aftermath of a dire
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