Israel takes foreign exchange selling precaution after currency falls sharply
The Israeli currency, the shekel, has fallen by up to 2 percent, after the attacks. The Bank of Israel has announced a program to sell up to $30 billion in foreign exchange to address the volatility in the currency. As clashes continue following Hamas’ attacks on Israel, the Bank of Israel has announced a program to sell up to $30 billion in foreign exchange. The bank will operate in the market in the coming period in order to smooth out the volatility in the shekel and provide the liquidity needed to ensure the smooth functioning of the markets. Hamas infiltrated southern Israel from the Gaza Strip on Saturday, carrying out several simultaneous attacks. Over 700 Israelis, most of them civilians, lost their lives as a result of the attacks. Around 260 people attending a music festival in an area not far from the northern border of Gaza were also killed by Hamas. Approximately 400 Palestinians lost their lives in Israel’s retaliatory attacks. Israel regained control of most of the areas infiltrated by Hamas, while Hamas took many Israelis hostage. Following the unexpected attacks, Israel officially declared war and announced that it would not end the operations without destroying Hamas’ military infrastructure. Following this statement, a ground operation in Gaza that could last months is expected. According to the Wall Street Journal, citing senior members of Hamas and Iran-backed Hezbollah, Iranian security officials helped Hamas plan the attack and gave the green light to the attack at a meeting held in Beirut last Monday. US President Joe Biden spoke on the phone with Israeli Prime Minister Benjamin Netanyahu twice in two days and conveyed military aid support. The US deployed six ships, including the aircraft carrier USS Gerald R. Ford, to the Eastern Mediterranean. The Turkish Foreign Ministry called for moderation on both sides, while President Recep Tayyip Erdoğan said, “We are determined to continue and intensify the diplomatic efforts we have initiated to restore calm.” Erdoğan stated that in order to solve the Palestine-Israel issue, the establishment of an independent and geographically integrated State of Palestine based on the 1967 borders, with (East) Jerusalem as its capital, is "an irreplaceable necessity."