Central bank's purchases follow program to buy $30 billion in 2021
Bank of Israel
The Bank of Israel was created by the Ministry of Finance in 1948 as the state’s central bank. It is charged with managing the monetary policy of the state and providing economic conditions to promote growth and success, but the government retains control over inflation targets as part of its economic policy.
In order to clearly define the relationship between the Bank of Israel and the government and to ensure the independence of the central bank, the Bank of Israel Law was passed in 1954, officially establishing the Bank of Israel, and the bank’s headquarters was established in Jerusalem.
The Governor of the Bank of Israel has a role in advising the government and in shaping monetary policy in the country. In accordance to Knesset law, the Bank of Israel conducts research by monitoring and analyzing developments in the Israeli economy and submits its results in the Bank of Israel’s Annual Report.
Another important aspect of the Bank of Israel is its role in the foreign currency market. By monitoring and assessing developments in Israel’s foreign currency market, the Bank of Israel conducts the exchange rate policy and publishes the representative exchange rate of the New Israeli Shekel against foreign currencies.
The current Governor of the Bank is internationally renowned economist Stanley Fischer. With Fischer’s guidance, the Bank of Israel helped the Israeli economy overcome the global economic downturn quicker than other Western nations, and his policies are credited with helping the Israeli economy continue to grow.
'Indiscriminate universal distribution – like a grant for every child regardless of income – isn’t efficient,' officials say
Bank of Israel announces it will buy $30 billion in 2021 in order to curb the rise of the shekel, a policy overhaul meant to provide the market with 'certainty about the bank's commitments'
The shekel has gained value sharply despite Israel's impending elections and the lack of political stability. In 2020, the shekel has gained 4.8 percent against key currencies
Panel of top economic experts issues recommendations for government to tackle high unemployment, with 11 unemployed for every available position
Step comes as treasury figures show that the residential property market is heating up again
Amir Yaron says 2021 budget and new labor policies needed to cope with problem
The objective of the new monetary tool is to boost credit supply to smaller businesses beyond what is issued by banks
The dollar is weakening due to optimism about a global economic recovery, as well as expectations that Washington will launch another economic incentive program
The country's GDP is still expected to shrink for the year as a whole, but by less than previously expected
Bank of Israel says hoarding has caused jump in supply of banknotes and coins
Michel Strawczynski, the Bank of Israel’s head of research, estimates the measures are costing Israel’s economy NIS 9 billion a day
Decision-makers are forced to confront worrisome statistics: On the one hand, there is the rise in the infection rate, On the other hand, the levels of economic freedom are narrowing
Some see Israel's currency making more gains, but others say greenback is due for a comeback thanks to changing Fed policy and weak Israeli economy
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Economists say pandemic continues to weigh heavily on economic activity
Unlike the two big crises of the past, there’s much less sense of urgency about COVID-19
The double-digit coronavirus unemployment rate will make it hard for households to service debt
'The harm to the earning potential of so many households is liable to endanger their resilience and challenge the financial system,' central bank says
In an interview with TheMarker, Amir Yaron warns that as debt ratio grows, Israel must show more fiscal caution. He worries about what will happen to the economy this winter
The Bank of Israel says the economy will contract 6% in 2020, a considerable cut from the 4.5% it had predicted at the end of May
Benefits also extended for employers age 67 and up who won’t be returning to work
In its latest projection, the recovery will take longer due to lingering coronavirus restrictions
It will also provide loans to banks for a term of three years, with the goal of increasing the supply of bank credit to small businesses
Demand for loans is growing and lending rates are rising as lockdown hits business, but banks are granting credit as per regulators’ suggestions
Expansionary monetary policy aimed at stabilizing capital market has only a modest impact on its first day
The government's hands have been tied over fiscal policy due to a year-long political stalemate following inconclusive elections
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