In a bid to support the market following the Hamas military attacks over the weekend, the Bank of Israel, the Israeli central bank announced on Monday a program to sell up to $30 billion in forex.
Additional takeaways
Will provide liquidity to the market through swap mechanisms of up to $15 billion as necessary.
Will operate in the market in the coming period to moderate Shekel volatility and provide needed liquidity.
Will continue monitoring developments tracking all of the markets and acting with the tools available to it as necessary.
The Israeli Shekel (ISL) opened on Monday, with a huge bearish gap against the US Dollar, as investors took account of the weekend’s military violence between Israel and the Hamas movement in Palestine.
USD/ISL jumped to the highest level since February 2016 at 3.9230 before reversing to the 3.9050 area on the central bank’s stabilization program. The currency pair is still adding 1.40% on the day.
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Source: https://www.fxstreet.com/news/usd-isl-israeli-shekel-pauses-sell-off-after-bank-of-israel-plans-to-sell-up-to-30-billion-in-forex-202310090516