Bank of Israel to Sell $30 Billion of Forex to Stabilize Shekel’s Volatility
Bank of Israel Takes Action to Maintain Stability
The Bank of Israel has announced plans to sell up to $30 billion of foreign currency in the open market. This move comes as the country finds itself in conflict with the Palestinian militant group Hamas. The central bank aims to moderate the volatility in the shekel exchange rate and ensure the smooth functioning of the markets.
Providing Liquidity and Stability
In a statement, the Bank of Israel emphasized its commitment to providing liquidity through SWAP mechanisms in the market, with a total value of up to $15 billion. These measures are intended to support stability and ensure the proper functioning of the financial system during this challenging period.
Addressing Volatility and Exchange Rate Fluctuations
By selling foreign currency, the Bank of Israel aims to counteract the impact of the conflict on the shekel’s exchange rate. The goal is to minimize excessive volatility and maintain stability in the currency market. These actions are crucial to mitigate potential economic disruptions caused by the ongoing conflict.
Supporting the Market’s Well-Being
The Bank of Israel’s intervention in the market is aimed at providing the necessary liquidity to ensure the continued proper functioning of financial markets. By doing so, the central bank aims to instill confidence and stability, creating an environment that supports economic growth and resilience.
Enhancing Market Stability
The Bank of Israel’s decision to sell foreign currency and provide liquidity through SWAP mechanisms demonstrates its commitment to maintaining stability in the face of geopolitical challenges. These measures are part of a broader strategy to safeguard the Israeli economy and protect it from the potential negative impacts of the conflict.
The Bank of Israel’s proactive approach in addressing the volatility of the shekel’s exchange rate is a testament to its commitment to ensuring stability. By providing liquidity and moderating market fluctuations, the central bank aims to safeguard the well-being of the financial system and support the continued growth of the Israeli economy.