Shekel Volatility Prompts Bank of Israel to Unload $30 Billion in Foreign Currency Reserves

Benzinga 2023-10-09

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The Bank of Israel announced it will sell up to USD 30 billion worth of foreign currency reserves to stabilize the shekel and reduce volatility amid the ongoing war between Israel and Palestinian militants in Gaza. The shekel weakened nearly 10% in 2023 due to political turmoil and expectations of a prolonged conflict in Gaza. There were concerns the shekel could experience further sharp depreciation without intervention from the central bank. Israel has over $200 billion in foreign exchange reserves, around 40% of GDP, built up over years of strong tech sector inflows.

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