Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Israeli Shekel Crashes to Lowest Level after Raising Interest Rate for 10th Time in 13 Months

Wed 24 May 2023 | 09:41 AM
Ahmed Moamar

The Israeli currency (the shekel) recorded its lowest levels against the main currencies (the US dollar, the euro, and the UK pound sterling) in three years, following the statements of the Israeli army chief of staff, Herzi Halevi, about "possible action against Iran", and a day after the Central Bank of Israel raised interest rates for the tenth time since April 2022 to curb inflation.

The Israeli newspaper Calcalist, which specializes in economics, reported that the shekel declined against major currencies (the dollar, the euro, and the pound sterling), while the value of the dollar rose against the euro and the pound sterling. 

The dollar recorded its highest level against the shekel since March 18, 2020, and the value of one dollar reached 3.70 shekels, while the value of the euro reached 3.98 shekels and the value of the pound sterling reached 4.58 shekels.

The Israeli newspaper quoted the economist, Ronan Menachem, as saying that the decline in the value of the shekel is due to several factors, most notably the statements of the Chief of Staff of the Israeli Army, Herzi Halevi, during his participation in the "Herzliya" conference and his saying that there are negative developments on the horizon that would push Israel to take action against Iran.