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Report: Israeli investors transfer $2.2bn abroad

March 6, 2023 at 10:49 am

Israeli shekels. [Christopher Furlong/Getty Images]

The indices on the Tel Aviv Stock Exchange have declined by ten to 15 per cent compared to Stock Exchanges in the United States and Europe, as the Israeli shekel’s value continues to decline against the US dollar and the euro.

The decline has prompted the Israeli public as well as companies to withdraw their funds and investment portfolios and transfer them abroad, according to a report published by the Times of Israel news website yesterday.

The mass withdrawals came in the wake of warnings from bank officials, economists and many companies about the economic consequences of the Israeli government’s plan to weaken the judiciary.

The report said the Israeli public withdrew money from mutual funds that invest in stocks and debt securities in Tel Aviv and transferred them to similar funds abroad in foreign currencies.

According to the report, during February, 1.5 billion shekels ($0.41 billion) were pumped into investment funds outside the country, more than five times more than during previous months.

The Stock Exchange report, published yesterday, indicated that over the past month, the Israeli public has withdrawn 8.1 billion shekels ($2.2 billion) from investment funds in Tel Aviv and transferred them to foreign currency investment portfolios.

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