Bank of Israel says currency intervention will only be necessary 'if we see market failures'

Bank of Israel Governor Amir Yaron stated that currency intervention to support the weakening shekel will only be necessary in the case of market failures, emphasizing that market forces should dictate the exchange rate amid increased uncertainty in Israel.

cnbc.com

Relevant topic timeline:

8/22/2023

Ex-BOJ official predicts no yen intervention until breach of 150 threshold

Japan will only intervene in the currency market if the yen drops below 150 to the dollar and becomes a major political issue for Prime Minister Fumio Kishida, according to a former central bank official involved in Japan's past market interventions.

9/1/2023

Japan finance minister offers no clues on intervention as yen weakens

Japanese Finance Minister Shunichi Suzuki suggests that currencies should be determined by the market, with no indication of intervening to support the weakening yen, despite concerns over rising import costs.

9/3/2023

Interest rate expected to remain at 4.75%, say analysts

The Bank of Israel is expected to maintain its interest rate at 4.75% due to decreasing inflation and indications of modest economic growth, despite concerns about the slowdown in the hi-tech industry and reduced demand for workers; meanwhile, interest rates in Israel are influenced by expectations of lower rates in the United States and the recent drop in the shekel's value.

9/4/2023

Smotrich says economy ‘strong and stable’ but admits inflation worse than forecast

Israel's economy is strong and stable, but inflationary pressures have not eased as predicted and the shekel has weakened against the US dollar, causing concerns about the impact of the proposed judicial overhaul on the economy.

9/5/2023

Israeli shekel sees 10.34% decline vs. USD since 2023 - new research

Despite the Israeli shekel being the currency that has weakened the most since the COVID-19 pandemic, Finance Minister Bezalel Smotrich claims that the Israeli economy is showing resilience and stability. However, recent data suggests that Israel's economy is struggling to improve, with slow economic growth and decreased consumer spending. The government's pursuit of judicial reform is also causing concern among international credit rating agencies.

9/9/2023

JPMorgan and Deutsche Bank Warn of Long-Term Weakness for Israeli Shekel Amid Domestic Political Turmoil

Leading US financial institution JPMorgan Chase & Co. warns that the recent weakening of the Israeli shekel may indicate long-term trends for the currency, citing political risk and a shift in foreign allocation by Israeli investors as contributing factors.

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Posted 9/5/2023, 11:25:59 AM