Jakarta –
Bank sentral Israel will release foreign exchange reserves of up to US$ 30 billion or IDR 465 trillion (exchange rate IDR 15,500). This was done to protect the currency which fell sharply following the Hamas attack.
“The central bank will operate in the market in the coming period to reduce the volatility of the shekel exchange rate and provide the necessary liquidity so that the market can continue to function well,” the central bank wrote in a statement quoted from CNBCMonday (9/10/2023).
The Israeli shekel weakened 1.63% and traded at 3.90 to the US dollar, its weakest rate in seven years. In addition, the central bank will provide liquidity to the market through a SWAP mechanism in the market of up to US$ 15 billion.
“Israel’s central bank will continue to monitor developments, track all markets, and act with available tools if necessary,” he added.
On Sunday, Israel’s benchmark TA-35 index closed down 6.47% and posted its biggest loss in more than three years since March 2020. “The Israeli economy is very strong,” Zvi Eckstein, former Deputy Governor of the Bank of Israel.
“Barring a physical attack from Iran, it is likely that Israel will return to full economic function within a week or two,” he said.
(acd/ara)
2023-10-09 08:17:39
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