Israel

Finance ministers from the world’s most advanced economies condemned Hamas for its attack against Israel, as war in the Middle East added to the threats facing the global economy, Bloomberg News reported. “We unequivocally condemn the recent terror attacks by Hamas on the State of Israel and express our solidarity with the Israeli people,” the Group of Seven countries said in a statement on Thursday in Marrakech, Morocco.

Israel has frozen cryptocurrency accounts used to solicit donations for the Palestinian militant group Hamas on social media, police said on Tuesday, Reuters reported. Hamas launched devastating attacks from Gaza into Israel on Saturday, in one of the most serious escalations in the Israel-Palestinian conflict in years. "According to suspicions, with the outbreak of the war, Hamas' terrorist organisation initiated a fundraising campaign on social networks, urging the public to deposit cryptocurrencies into their accounts," a police statement said.

The shekel regained its footing as the central bank dueled short sellers to contain the market fallout from Israel’s conflict with militant group Hamas, Bloomberg News reported. The currency strengthened as much as 1% in the first half hour of trading on Tuesday and was little changed against the dollar as of 4:42 p.m. local time. The nation’s benchmark stock index, which slumped 6.5% on Sunday, rose as much as 1.4%, before paring gains.

Israel’s central bank has resorted to unprecedented measures to contain the most intense volatility faced by the shekel in two decades but couldn’t prevent its steep slide after an attack by Hamas militants led the government to declare war, Bloomberg News reported. In a statement minutes before trading was set to begin on Monday, policymakers said they’d sell as much as $30 billion of reserves to support the currency and extend up to $15 billion through swap mechanisms.

Israel's central bank is pushing forward with plans to issue a digital shekel, citing the need to improve the country's payment systems, but on Tuesday remained noncommittal on whether one would be launched, Reuters reported. The Bank of Israel in November 2021 stepped up its research and preparation for the possible issuance of a digital shekel to create a more efficient payments system after first considering issuing a central bank digital currency (CBDC) in late 2017.

Israel's Supreme Court heard arguments on Tuesday against a bid by Prime Minister Benjamin Netanyahu's government to curb the court's powers, part of a judicial overhaul that has divided the nation, sparked months of protests and worried Israel's allies, Reuters reported. The court's 15 judges were hearing challenges by watchdog groups against a amendment passed in July ending the Supreme Court's ability to overturn some government decisions when it deems them "unreasonable".

Israel’s interest rates are high enough to bolster the shekel and ensure inflation slows to 3% or less by early next year, according to the country’s central bank governor, Bloomberg News reported. “We believe the current rate is in restrictive territory,” Amir Yaron told Bloomberg Television from Jerusalem. He spoke a day after the Bank of Israel kept its benchmark rate unchanged at 4.75%, even with the shekel having recently depreciated to a three-year low. The currency weakened 0.2% to 3.79 per dollar as of 2:10 p.m. local time.

Israel-based fintech Vesttoo is seeking chapter 11 protection in a U.S. court which will enable it to pursue legal action against those responsible for a fake collateral scandal, it said in a statement yesterday, Reuters reported. Vesttoo - partly backed by Banco Santander's fintech venture capital arm Mouro Capital - has laid off staff, closed offices and appointed an interim chief executive following the discovery of fraudulent letters of credit used on its platform. Vesttoo provides insurers with access to so-called insurance-linked securities - an alternative form of reinsurance.

Israel’s Parliament was preparing on Monday to pass a law reducing the power of judges to overrule government decisions and appointments, a plan that has sent hundreds of thousands of protesters into the streets and threatens to undermine the country’s economy and security, Bloomberg News reported. The bill is sponsored by the right-wing government of Prime Minister Benjamin Netanyahu — who was discharged from the hospital Monday and joined the debate after having a cardiac pacemaker inserted. Advocates for law argue that the courts have grown too powerful and are captured by the left.