Israel Lost $7 billion from the foreign exchange reserve to protect the shekel
Nov 07, 2023

Israel Lost $7 billion from the foreign exchange reserve to protect the shekel

The Israeli authorities spent $7 billion in foreign exchange reserves in an attempt to protect the shekel after the escalation of the conflict with Hamas. This is reported by Bloomberg.

It is noted that shortly after the Hamas attack on October 7, the central bank of Israel announced special measures to support the economy. Within their framework, the bank has planned the sale of up to $ 30 billion of foreign exchange reserves, as well as the provision of up to $ 15 billion through swaps. However, the shekel exchange rate still fell to 4.08 per dollar — this is a record low since 2012. At the same time, Israeli reserves also fell by 3.7% — by $ 7.3 billion. Thus, Israel now has $191.2 billion in reserves. This is the lowest mark for the whole of 2023, but it is still higher than the average for the last ten years.  At the same time, the source notes that over the past 10 days, the economic situation in Israel has improved slightly. According to the publication, this was facilitated by signs of the transition of the conflict into a local channel — experts believe that the fighting can be limited only to the territory of the Gaza Strip.  Earlier, Bloomberg reported that the Israeli economy faced problems comparable to the times of COVID 19.

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