Tel Aviv: Israel economic jolted after the Hamas Operation Al-Quds Flood as it currency shekel lowered down to the lowest level against the US dollar in seven years.
The Bank of Israel has announced to sell out 30 billion dollars foreign currency in the open market. Monday’s announcement, the central bank’s first ever sale of foreign exchange, appeared to quickly restore calm in the market as the shekel recovered from steep early losses on Monday.
They said that they will provide liquidity up to 15 billion dollars through SWAP mechanisms, a derivative contract in which one party swaps the cash flows or value of one asset for another.
“The Bank of Israel will continue monitoring developments, tracking all the markets, and acting with the tools available to it as necessary,” it said.
Ahead of the announcement, the shekel had weakened by more than 2 percent to a near-eight-year low of 3.92 per dollar. The shekel early on Monday recovered to 3.86 per dollar, down 0.6 percent.
The currency pair is not particularly active during Asian hours. The shekel was last down more than 3% against the dollar at 3.9581.
