Bank of Israel
Coverage of Bank of Israel in the Nexus archive.
- The Palestinian economy is struggling. In the West Bank, the problem is too much cash
The Palestinian economy in the West Bank is struggling due to an oversupply of Israeli shekels, caused by a cap set by the Bank of Israel on cash withdrawals. Palestinian banks are overwhelmed with physical currency, making it difficult for residents and businesses to manage transactions, while officials accuse Israel of perpetuating an economic crisis through restrictive policies.
- The Palestinian economy is struggling. In the West Bank, the problem is too much cash
The Palestinian economy in the West Bank faces challenges due to an oversupply of Israeli shekels, caused by a cap set by the Bank of Israel on cash withdrawals. Palestinian banks struggle to manage the excess liquidity, disrupting daily transactions and business operations.
- Central bank trims borrowing costs to 2022 low, sees room for further rate cuts
The Bank of Israel cut its benchmark interest rate to 3.5%, the lowest since 2022, signaling potential for further reductions. However, the Finance Minister and manufacturers criticized the decision, arguing it does not address the needs of businesses and households.
- Report: Wars in Middle East cost Israel $205 billion since 7 Oct
A report cited by Israeli media states that Israel's wars in Gaza, Lebanon, Syria, and Iran since October 7, 2023, have cost nearly $205 billion. Government expenses include $71.2 billion in defense spending, $9.6 billion in compensation, and $16.7 billion in civilian expenditures, with the US providing $26 billion in military aid. Economic losses from production declines are estimated at $51.9 billion through 2025, with $58.6 billion projected for this year.
- In first since 2022, Bank of Israel buys foreign currency to stem sharp shekel gain
The Bank of Israel purchased $801 million in foreign currency to address a sharp rise in the shekel, which reached a 33-year high against the dollar. The move aims to prevent potential layoffs and relocations by tech firms due to economic concerns.
- Israel's permanent state of war comes with economic, social costs
Israel's multi-front war and defense spending have driven public debt to 69% of GDP, with defense budget doubling since October 2023. Cutbacks in education and healthcare are feared as taxes and social security contributions rise, while a survey shows 31% of Israelis experienced income declines since October 7, 2023.
- Bank of Israel cuts borrowing costs, while flagging geopolitical risks
The Bank of Israel cut borrowing costs and warned about geopolitical risks, but local manufacturers criticized Governor Yair Yaron for insufficient action. A strong shekel is harming the competitiveness and profitability of exporters.
- A digital shekel is here: Israel approves its first regulated stablecoin
Israel has approved its first regulated stablecoin, the digital shekel, marking a significant step in the country's digital currency initiatives. The move is seen as a positive development for Israel's financial sector.