Bank of Israel's $801 Million Intervention Fails to Halt Shekel's 4.6% May Surge
By
Sergio Goschenko
23h ago· 3 min readenNews
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Summary
The Bank of Israel purchased $801 million in May 2025 to intervene in foreign exchange markets and halt the shekel's surge against the U.S. dollar. Despite this rare and large-scale intervention, the shekel ended May with a 4.6% gain, reaching one of its strongest exchange rates. The central bank faces a dilemma as the currency maintains strength even while actively trying to weaken it to preserve export competitiveness. This strength is unusual given that other currencies have lost value against the dollar amid the ongoing U.S.-Israel-Iran conflict, creating economic challenges for Israel's economy and tech sector.
Key quotes
· 4 pulledThe Bank of Israel purchased $801 million in May to stop the shekel from rising as the currency reached one of its strongest exchange rates against the U.S. dollar.
Even so, the currency terminated May with its value rising by 4.6%.
Israel's economy is facing a dilemma, as its currency has maintained its strength even as the central bank actively seeks to decrease its value to maintain a healthy exchange rate.
While other currencies have lost value against the U.S. dollar since the current U.S.-Israel-Iran conflict
Explore the impact of the Israel shekel's strength on the economy and tech sector amid central bank interventions.
