Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
IRGC statement: Repetition of evil will lead to the realization of the common aspiration of the Islamic nation and free peoples to eradicate the cancerous gland of Zion.
IRGC statement: Any repetition of evil will accelerate the collapse of the US military establishment in the region.
IRGC statement: US bases and mobile military targets in the region are not a strength of this national defense, but rather a weakness.
IRGC statement: Iran will not leave any attack on its territorial integrity, sovereignty, or national security unanswered under any circumstances.
IRGC statement: This base is the headquarters of the Air Force and the largest strategic asset of the terrorist American army in the West Asia region.
IRGC statement: We targeted Al Udeid base in Qatar with a powerful and devastating missile attack as part of Operation Annunciation of Victory.
Explosions heard across Doha: AFP journalists
Qatari Ministry of Foreign Affairs: Qatar temporarily closes its airspace "for the safety of citizens, residents, and visitors."
Al Mayadeen: Israeli warplanes raid the outskirts of Al-Aishiya and Al-Mahmoudiya, Southern Lebanon.
Israeli media: Direct damage from Iranian bombing of "Israel" in one week is estimated at approximately 5 billion shekels (about $1.35 billion)

Israeli shekel; one of the world’s worst performers since August

  • By Al Mayadeen English
  • Source: Bloomberg
  • 9 Oct 2024 19:23
4 Min Read

The Israeli economy is taking a hit as the wars on multiple fronts extend beyond the one-year threshold leaving the Israeli occupation's shekel depreciating by 3.4% against the dollar.

Listen
  • x
  • People buy fruits and vegetables in a local market in Haifa, occupied Palestine, Friday, Aug. 16, 2024. (AP)
    People buy fruits and vegetables in a local market in Haifa, occupied Palestine, Friday, Aug. 16, 2024. (AP)

"Israel's" central bank is likely to maintain its interest rate at 4.5% for the sixth consecutive time due to rising inflation driven by the ongoing wars in Gaza and Lebanon, according to a Bloomberg report citing 16 surveyed analysts.

Despite a global trend of rate cuts, the Bank of Israel has been constrained, the report noted before citing the Governor of the occupation's central bank, Amir Yaron, as saying that rate reductions may not occur until the second half of 2025 "despite the economy slowing as war hits industries from tourism to agriculture and construction."

Moreover, the report underscored that the Israeli occupation's currency, the shekel, has depreciated by about 3.4% against the dollar since late August and that "Israel's" credit risk premium has reached its highest point in 12 years.

The economic situation has worsened, the report noted, as the Israeli occupation forces expanded their wars on multiple fronts, including Lebanon and Iran, in addition to the Palestinian fronts that are coupled with stalled ceasefire talks.

The report further highlighted the recent credit downgrades from Moody's and S&P Global Ratings, stressing that the ongoing war has strained "Israel's" fiscal situation, with the budget deficit hitting 8.3% of GDP as of August.

Adjustments to the 2024 budget are anticipated, and the 2025 plan is expected to propose spending cuts and tax hikes, Bloomberg explained, adding that if fiscal policies continue to be expansionary, the Bank of Israel might need to counterbalance by raising interest rates to curb inflation which is forecasted to "climb to 5% in early 2025".

Related News

October saw $4.3Bln decrease in 'Israel's' forex reserves

'Israel' 2025 budget focuses on funding genocidal wars, economy second

War is costing Israeli economy over $66.6 billion: Smotrich

Israeli Finance Minister Bezalel Smotrich acknowledged that the ongoing "war is the longest and most expensive war in Israel’s history" with direct costs amounting to approximately 250 billion shekels ($66.6 billion) so far.

He further emphasized that this figure is likely to increase, stating, "We will all feel the need to finance this war, and it will not be easy for us."

Meanwhile, Gad Lior, a journalist for Ynet News, offered a sharp critique of Smotrich's presentation of the economic situation during an interview with Ynet Studio on Tuesday. He argued that Smotrich's analysis lacked a solid grasp of economic principles and failed to acknowledge the prevailing realities affecting the Israeli economy. 

Lior highlighted Smotrich's characterization of Moody's report as "weak and absurd," stating that "economists in London will not lecture us." He warned that such remarks could encourage credit rating agencies to continue downgrading "Israel's" rating and pointed out that Smotrich's information about the headquarters of Moody's and its management was incorrect.

Lior emphasized that "in the dangerous situation affecting the Israeli economy during Smotrich's tenure, the minister dares to use harsh words attacking rating agencies due to his complete ignorance."

He added that "what is concerning is that the person at the helm of the economic system in Israel lacks an understanding of sensitive and complex economic processes."

In this context, he noted that there is a consensus among economists, both in "Israel" and globally, that the Israeli economy has not been managed responsibly over the past year.

Read more: Escalations with Iran, Hezbollah cost 'Israel' billions: Israeli media

  • Israel
  • Israeli occupation
  • shekel
  • Israeli economy
  • Interest rate
  • inflation
War on Gaza

War on Gaza

Most Read

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

  • MENA
  • 17 Jun 2025
Israeli workers survey the site where a missile launched from Iran struck in Haifa on Sunday, June 22, 2025. (AP)

True Promise 3, wave 20: 40 missiles launched, Kheibar-Shekan in first

  • Politics
  • 22 Jun 2025
Rescue team work at the site where a missile launched from Iran struck Tel Aviv, Israel, Monday, June 16, 2025 (AP)

Wave 12 of Operation True Promise 3 launched, Sejjil deployed: IRGC

  • Politics
  • 18 Jun 2025
Iran launches missile barrage to Tel Aviv, casualties reported

True Promise 3, wave 14: Tel Aviv targeted, casualties reported

  • Politics
  • 19 Jun 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Spain's Foreign Minister Jose Manuel Albares Bueno speaks with the media as he arrives for a meeting of EU foreign ministers at the European Council building in Brussels, Monday, June 23, 2025. (AP Photo/Virginia Mayo)
Politics

Spain seeks immediate suspension of EU association pact with 'Israel'

Israeli settlers evacuate a building damaged in an Iranian missile strike in Tel Aviv, Sunday, June 22, 2025. (AP)
Politics

Tel Aviv streets ghostly; settlers flee under Iranian missile fire

Trump’s secret Iran strike uncovered in explosive CNN report
Politics

Behind the scenes: Trump's decision to strike Iran mapped - CNN

The oil tanker Palanca Rio arrives in Portland, Maine, the United States, Wednesday, April 2, 2025 (AP)
Economy

Oil prices spike as US-Israeli aggression on Iran sparks concerns

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS