Israel’s central bank has resorted to unprecedented measures to contain the most intense volatilityBloomberg Terminal faced by the shekel in two decades but couldn’t prevent its steep slide after an attack by Hamas militants led the government to declare war.
In a statementBloomberg Terminal minutes before trading was set to begin on Monday, policymakers said they’d sell as much as $30 billion of reserves to support the currency and extend up to $15 billion through swap mechanisms. While the shekel slumped to its weakest since 2016 and a gauge of expected swings rose sharply, the Bank of Israel signaled confidence in its efforts so far, saying an emergency interest-rate hike isn’t currently on the table.
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