Posted 10/9/2023, 6:35:00 AM
Israel's Central Bank Intervenes to Prop Up Shekel Amid Conflict Volatility
- Israel's central bank takes unprecedented measures to prop up shekel after steep slide due to conflict with Hamas
- Policymakers will sell up to $30B in reserves and extend $15B in swaps to support currency, but shekel still drops to 2016 lows
- Move marks first time bank has sold forex reserves to support shekel since allowed to float freely
- Bank says emergency rate hike not on table now, confident in efforts so far to smooth volatility
- Shekel remains vulnerable, with options pricing in 70% chance of drop to 4 per dollar in a month vs 18% before conflict