Israel’s central bank, guardians of monetary stability
Ultra-Orthodox political figures have warned of stepping back from cooperation with government bodies and even triggering economic pressure in response to ongoing efforts to conscript yeshiva students. The rhetoric comes amid rising protests and a broader national debate over military exemptions for Haredi men, with a High Court ruling already mandating enlistment.
The Israeli economy is navigating the strongest shekel in 33 years, weighing on exports and forcing startups to reassess operations. Banks and the government are rolling out measures to support cash flow, while foreign exchange dynamics are reshaping real estate and hiring decisions. The Times of Israel reports multiple developments, including rate cuts, export pain, and a policy response.
Prices have fallen across major Israeli cities amid war-related uncertainty. April data show a 19% drop in apartment transactions and a sharp decline in investor purchases, while foreign buyers led Jerusalem's 2025 acquisitions.
The West Bank faces a cash surplus problem as the Palestinian banking system holds far more Israeli shekels than it can convert to electronic balances. Banks are constrained by Israel’s cash transfer limits, while cash from Palestinian labor and commerce continues to flood in. The result is a liquidity crunch that is hampering daily commerce.