Israel-Palestine War: Israel’s currency disintegrated, shekel price lowest in 7 years, impact on these countries too

Israel-Palestine War: Israel’s currency disintegrated, shekel price lowest in 7 years, impact on these countries too

The war between Israel and Palestine in West Asia continues for the 5th day today. At present there is no solution in sight to this war that started after the Hamas attack. Meanwhile, Israeli currency Shekel has suffered huge losses and its value has fallen to its lowest level in many years.

Israeli currency at this level

According to a report by Reuters. According to this, on Monday the Israeli currency Shekel had fallen by more than 2.5 percent. That is the biggest fluctuation in the shekel price in a single day since March 2020. Even today the price of shekel remains under pressure. Currently, the value of shekel has reduced to around 4 against one dollar. This is the lowest value of the shekel in 7-8 years.

Lowest value since 2016

The value of Israel’s currency shekel has declined by more than 11 percent so far this year. She has arrived. Compared to major international currencies, the price of dollar is already showing a rise this year. Due to this, almost all Asian currencies are under pressure in 2023. After that, the entry of the West Asian country into war has affected the value of the shekel and now the value is at the lowest level since the beginning of 2016.

The premium has increased so much

According to Reuters, Israel’s sovereign bonds have also been affected due to the war. The cost of insuring the country’s sovereign bonds has increased significantly due to default. According to data from S&P Global Market Intelligence, the 5-year credit default swap has seen a rise of 0.93 percent. It pays the bond holder in case of default of the bond issuer.

Impact on the markets of these countries also

The impact of this Israel-Palestine war is becoming quite widespread. . Israel’s stock market has also been affected by this war. Apart from this, the war has also had a negative impact on the stock market, bond market and currency etc. of neighboring countries like Lebanon, Jordan and Egypt. In view of the falling value of the shekel, the Bank of Israel had said on Monday that it would sell foreign currency equivalent to $30 billion in the open market.

Also read: Crude oil prices rise due to Hamas attack on Israel, prices rose by 5 percent in one stroke

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