The Bank of Israel announced plans to release up to $30 billion in foreign currency into the open market in response to the sudden attack by Hamas over the weekend. This conflict has tragically resulted in over 1,100 casualties.
This unprecedented move by the central bank seemed to stabilize the situation, as evidenced by the shekel’s recovery from significant early losses, decreasing over 2%.
In a statement, the bank noted its intention to remain active in the market in the near future to reduce fluctuations in the shekel’s value and to ensure market liquidity remains intact.
Furthermore, the Bank of Israel indicated its plans to infuse liquidity using SWAP mechanisms, amounting to as much as $15 billion.
The bank reiterated its commitment to keeping a close watch on market dynamics and employing necessary measures using its available resources.
Before this announcement, the shekel had depreciated by over 2%, hitting its lowest in over seven years at 3.92 against the dollar. As of now, the shekel is valued at 3.86, reflecting a 0.6% decline.
