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Jerusalem, 30 December, 2025 (TPS-IL) — The following are the end of day exchange rates as set by the Bank of Israel Tuesday, December 30, 2025:
(Units are given in the foreign currency and the rate is given in its value in Shekels)

Currency | Unit | Rate (NIS) | Daily Change (against the Shekel)
US Dollar | 1 | 3.1820 | ‎-0.656%
GB Pound | 1 | 4.2983 | ‎-0.65%
Japanese Yen | 100 | 2.0405 | ‎-0.434%
Euro | 1 | 3.7443 | ‎-0.64%
AUS Dollar | 1 | 2.1331 | ‎-0.573%
Can Dollar | 1 | 2.3225 | ‎-0.714%
DAN Krone | 1 | 0.5014 | ‎-0.654%
NOR Krone | 1 | 0.3166 | ‎-0.752%
SA Rand | 1 | 0.1914 | -0.623%
SWD Krona | 1 | 0.3464 | ‎-0.745%
SWS Franc | 1 | 4.0313 | -0.535%

By Pesach Benson • December 11, 2025

Jerusalem, 11 December, 2025 (TPS-IL) — Increasing Orthodox Jewish (Haredi) enlistment in the Israel Defense Forces could save the economy billions of shekels, the Bank of Israel said on Thursday. A month of reservist service costs about NIS 38,000 ($11,700), while conscripting young Haredim is far cheaper and may even encourage them to join the workforce. Expanding enlistment by 7,500 Haredim annually — adding around 20,000 over time — could cut the economic burden of reservists by NIS 9–14 billion ($2.8-$4.3 billion) a year.

The report warns that the Security Service Law being considered by the Knesset sets low recruitment targets and weak incentives, meaning it may not meet army needs or reduce costs.

Jerusalem, 1 December, 2025 (TPS-IL) — The Bank of Israel today (Monday) held a conference on “Payments in the New Age”, with the participation of senior representatives of the financial system, regulators, fintech firms, payment infrastructure operators, experts from academia, and international guests. The conference focused on developments that are defining the world of payments in Israel and abroad, and their impact on innovation, competition, efficiency, and financial stability. The conference included presentations on the trends that are defining the payments market in Israel and abroad.

The conference reflected the measures being taken to advance innovation in the national payment systems that is being promoted by the Bank of Israel, alongside the adoption of advanced international standards and close regulatory cooperation.

The conference provided a broad platform for dialogue between all the participants in the payments ecosystem—government authorities, regulators, banks, technology firms, and international entities—and strengthened the cooperation required to lead the Israeli market forward.

By Pesach Benson • November 24, 2025

Jerusalem, 24 November, 2025 (TPS-IL) — After nearly two years, the Bank of Israel lowered its interest rate, cutting it by a quarter of a percentage point to 4.25% on Monday. This marks the first reduction since January 2024, ending a stretch of 14 consecutive decisions in which the rate remained unchanged at 4.5%.

The Monetary Committee, led by Governor Professor Amir Yaron, made the decision amid months of inflation running below the target range and ongoing political pressure.

Inflation currently stands at 2.5%, comfortably within the Bank’s 1%-3% target, and has remained below the center of that range for several months. An initial cut had long been expected.

The reduction is expected to directly impact families and mortgage holders across the country. For an average mortgage of NIS 1 million ($310,000) over 25 years, monthly repayments will initially drop by around 70 shekels ($21), translating to over NIS 20,000 ($6,100) in savings across the life of the loan. Estimates from the Mortgage Advisors Association suggest annual savings for mortgage holders will range from NIS 720-2,300 ($220-$700).

The new interest rate will take effect Thursday, allowing banks time to adjust.

Economic activity in Israel has shown signs of recovery. GDP expanded at an annualized rate of 12.4% in the third quarter, though the overall level remains below the long-term trend. The labor market continues to be tight, with a high ratio of vacant jobs to unemployed individuals, and wage growth remains strong. Apartment prices have declined for seven consecutive months, with fewer purchase transactions, while local stock indexes have risen relative to global markets.

The shekel has also strengthened, appreciating 1.3% against the dollar and 2.9% against the euro since the last interest rate decision. The capital market had largely anticipated a rate cut, with stock and bond markets already reflecting the change. Analysts point to a combination of global interest rate declines, reduced risk premiums following a ceasefire with Hamas, and moderated inflation as key factors behind the timing.

Jerusalem, 19 November, 2025 (TPS-IL) — The Bank of Israel launched a nationwide campaign on Wednesday to boost public awareness of financial fraud, amid a continued rise in digital scams targeting Israelis. The effort is led through the Financial Education Forum, which includes the Banks Association, commercial banks and credit card companies.

The new campaign will run across television, radio and digital platforms, offering guidance on spotting common online fraud schemes and ways to protect personal information. In December, the forum will also hold online and in-person lectures in Hebrew, Arabic and Russian, in cooperation with the Israel Police. The initiative builds on years of outreach including hundreds of lectures and media campaigns since the forum’s establishment in 2016.

Jerusalem, 20 August, 2025 (TPS-IL) — The Bank of Israel announced on Wednesday that it is leaving the interest rate unchanged, at 4.5%. This is the 13th consecutive time that the interest rate has remained the same.

Jerusalem, 21 July, 2025 (TPS-IL) — The Bank of Israel’s Monetary Committee released its “Monetary Policy Report First Half of 2025.” The Monetary Committee kept the interest rate unchanged at 4.5% in all its decisions in the first half of 2025 saying, “in view of the geopolitical uncertainty, but global and domestic, and considering the inflation environment, the Monetary Committee’s policy focused on stabilizing the markets and converging inflation to its target, alongside supporting economic activity.”

At the end of the first half of 2025, the year over year inflation rate was 3.1% (CPI for May), above the target range, compared to 3.4% at the end of the previous half year (CPI for November 2024). The inflation rate of nontradable components remained stable at a high level of 3.9% (May CPI), reflecting excess demand on view of supply constraints. The year-over-year inflation rate during the period was volatile, ranging from 3.1 to 3.8%, in view of tax increases, particularly the increase in VAT in January, and influenced by the travel abroad component. According to forecasters, inflation is expected to converge to the target range in the third quarter of 2025—similar to the assessment at the end of the previous half-year. Expectations and forecasts for a range of 1 year and for longer ranges declined during the reviewed period, and are around the midpoint of the inflation target range.

The cumulative deficit in the state budget over the past 12 months totaled 5% of GDP in June. Total government receipts from taxes in June, excluding legislative changes and one-off revenues, returned to the long-term trend (in fixed prices), after being above the trend line at the end of the previous half-year. The immediate budgetary cost of Operation Rising Lion is estimated at 1% of GDP. According to the Research Department’s July 2025 forecast, the debt to GDP ratio is expected to rise from 68% in 2024 to 70% in 2025 and 71% in 2026.

Jerusalem, 16 July, 2025 (TPS-IL) — The Bank of Israel reported on Wednesday that rent premiums surged significantly during the 12 days of war with Iran.

According to the Bank’s analysis, advertised rents were roughly 4 percentage points higher at the end of 2024 compared to early 2023. In contrast, apartment purchase premiums temporarily spiked after the outbreak of the war with Hamas in October 2023 — but then dropped from 8.1% to 6.2% on average.

The study suggests renters are more responsive to security concerns due to shorter commitments, while buyers may expect postwar recovery.

Jerusalem, 7 July, 2025 (TPS-IL) — The Bank of Israel decided to leave the interest rate unchanged at 4.5% on Monday.

The bank’s Monetary Committee has not changed the interest rate since January 2024.