Israel’s shekel fell up to 0.5%, and stocks dropped 1.2% as renewed Gaza strikes ended a fragile ceasefire, raising economic and humanitarian concerns.
While Israel’s wages climbed in 2024, January 2025 data signals real wage erosion amid rising inflation and tax increases.
The shekel continues to trade at its strongest levels against the dollar since early 2023.
The rate has stayed at 4.5% since January 2024, when it was cut from 4.75%.
The voluntary disclosure procedure allows Israelis who have concealed and unreported assets to report them to the state and pay tax with immunity from criminal proceedings.
Despite not having a national budget approved for 2025, a labor crisis, and a ceasefire that could collapse at any moment, Israel still shows signs of optimism.
On Wednesday, the Bank of Israel set the representative shekel-dollar rate down 0.859% from Monday.
The shekel was trading at 3.56 versus the dollar, a change of 0.06% from Tuesday's close by 0822 GMT.
Treasury official to Post: The continuing budget has the advantage of slowing expenditure, which moderates the deficit, but this comes with uncertainty and limits on the government to plan and act.
On Friday, the Bank of Israel set the representative shekel-dollar rate 0.506% higher, at NIS 3.575/$.
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