The Bank of Israel is responsible for formulating and implementing monetary policy in Israel. It uses various tools, including interest rate adjustments, to control inflation and stabilize the economy during the war.
Now The Bank of Israel kept short-borrowing interest rates at 4.75% and the rates are maintained this level for the third time. It may help to avoid the inflation and weakened economy.
The Bank of Israel is the sole issuer of the Israeli New Shekel, the country’s currency. It manages the country’s foreign exchange reserves and participates in currency markets to influence the exchange rate of the Israeli New Shekel.
Foreign Exchange Reserves:
The Bank of Israel manages the country’s foreign exchange reserves, which are held in various currencies. These reserves are important for stabilizing the local currency and ensuring economic stability.
The Bank of Israel is headed by a Governor, who is supported by a Monetary Committee. The Governor and the committee members are responsible for making key decisions related to monetary policy, interest rates, and other important financial matters.