Ministry of Finance: Israel ready for "financial earthquake"

The Israeli financial system is ready for possible difficulties related to the political tensions in the country, which in turn causes uncertainty in the markets.

This was stated by Israeli Finance Minister Bezalel Smotrich, presenting the budget and the law on agreements for 2023-2024.

According to him, the current difficulties in the financial sector are caused not only by the government's legal reform, but by a combination of many factors. "All negative factors began to act simultaneously. However, Israel is ready to accept and cope with economic shocks. There is no catastrophe here", he stressed.

Economic situation in Israel
On Tuesday, the shekel weakened against the dollar, which was trading at around 3.67-3.68 shekels, the European currency fixed at 3.89 shekels. Today, the Tel Aviv Stock Exchange opened with a decline of the leading indexes by about a percentage point.

Analysts attribute these factors to the ongoing political instability in the country caused by legal reform, as well as a tense security situation, and also warn that this could lead to a decline in the Israeli banks' value of shares in the future.