Israel: shekel collapses against US dollar after Hamas Operation Al-Aqsa Flood

This picture taken on August 23, 2022 shows a view of the exterior of the headquarters of the Bank of Israel, the country’s central bank, in Kiryat Ben-Gurion in Jerusalem [AHMAD GHARABLI/AFP via Getty Images]

The new Israeli shekel (NIS) fell close to an eight-year low against the US dollar on Monday in the aftermath of Operation Al-Aqsa Flood led by the Palestinian Islamic Resistance Movement against the occupation state on Saturday. In trading today, the shekel was down more than 3 per cent against the dollar at 3.9581.

According to Yedioth Ahronoth, the shekel has also collapsed against foreign currencies while global oil prices have increased due to the war in Gaza. Economists expect the Hamas operation to have a direct economic impact in the future.

Earlier today, the Bank of Israel announced that it plans to sell up to $30 billion in foreign exchange to protect the shekel from further collapse.

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