Israel's Economy Bleeds Over $7 Billion

Israel's international reserves fell by more than $7 billion in October, as the Israeli central bank sought to defend the shekel following the outbreak of war in the Gaza Strip. According to data from the Israeli central bank, reserves decreased by $7.3 billion, or 3.7%, reaching $191.2 billion, the lowest level in nearly a year. The Bank of Israel had previously announced a support package worth $45 billion shortly after the conflict erupted on October 7, 2023, and pledged to sell up to $30 billion of its foreign currency reserves and provide up to $15 billion through swaps to support the shekel. The shekel remains at its weakest level since 2012, while the cost of hedging against further losses has risen. Additionally, Israeli stocks and bonds have sharply declined as traders fear the war may escalate into a regional conflict.