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.
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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Israel issues overseas debt at an average rate of 3% while the Bank of Israel’s growing forex portfolio earns just 1%
'At a time when the business cycle is healthy, at a time when the economy is running smoothly, and the labor market is tight, we’re not advancing,' says Amir Yaron
Surge in borrowing to 67.6 billion shekels was due to a government program, which offered lower-priced housing to qualified buyers via a lottery ■ Bankers say trend will continue in 2020
Israel’s budget deficit is rising quickly, but rather than accept reality, cabinet ministers attack the messenger
Amir Yaron blames speculators for strengthening shekel, sees slower GDP growth in 2020
Andrew Abir, who started in the dealing room three decades ago, has been at the forefront of a strategy to buy foreign currency instead of lowering interest rates in order to tame the shekel
The shekel has gained more than 7% this year against the dollar, making it one of the world’s strongest currencies
With the shekel still going strong, and political uncertainty weighing on forecasters' minds, the central bank bets on new thinking, unpredictability
Israel still has some of the highest rates of inequality among developed countries, and also one of the highest poverty rates
Reudction would mark an about-face after a rate hike a year ago amid low inflation, mixed signals on the world and local economies, and a strong shekel
In the wake of the fighting, bank branches were closed not only near the Gaza Strip but as far north as Tel Aviv, other than key branches
‘Freelancers have no protection – neither legally nor socially,’ says lobbyist – and they are on their way to being the majority in the workforce