Israeli New Shekel

• The Bank of Israel (BoI) is Israel’s monetary authority. Its objective is to maintain price stability.
• Price setting method: the floating exchange rate is described as “supervised”, because the BoI is likely to make targeted interventions to influence the value of the ILS, mainly against the USD.

• Liquidity on the Shekel (freely convertible since 2003 only) tends to fall on Friday afternoon, as local banks close for Shabbat.

Even if ILS is a smaller currency, it behaves like a major one, often moving in tandem with USD, following global economic trends, but with slightly less volatility than USD.

• Since Israel is traditionally an exporting country, the BoI tends to intervene to limit the assessments deemed excessive by the ILS.

There are no particular restrictions regarding the purchase and sale of ILS.