'Israel' loses billions in foreign exchange reserves 🚨

Al Mayadeen |

In a striking blow to the Israeli economy, foreign exchange reserves have plummeted by $5.632 billion from March to April 2024, as reported by the Israeli central bank. This decrease is part of a worrying trend of financial instability, with reserves now standing at $208.109 billion.

💸 Massive Financial Strain: The decline in reserves is primarily due to a $3.895 billion revolution of Israeli foreign assets and a deficit of $1.703 billion from government transactions in foreign assets. This comes amidst ongoing genocide in Gaza, with the Bank of Israel having sold a staggering $8.5 billion in foreign currency since October 7, 2023.

🔻 Economic Warning Signs: Bank of Israel Governor Amir Yaron has voiced concerns over the unsustainable military expenditures. "Israel’s increasing military budget spending is endangering the economy," Yaron stated. He warned that the debt-to-GDP ratio, which has surged to 61.9%, could trigger higher yields, devaluation, and inflation.

📉 Further Economic Impact: Plans to boost government spending by 10 billion shekels annually from 2025 could potentially double, even as economic sectors like maritime trade, agriculture, and tourism suffer severe disruptions due to the ongoing genocide . These sectors, crucial to Israel's economy, are directly affected by the state's actions in Gaza.

This financial downturn highlights the broader consequences of Israel's military actions, emphasizing the unsustainable nature of its current policies and the urgent need for a change in approach.

The economic indicators serve as a stark reminder that aggression and occupation carry a heavy price, not just in human but also in economic terms.

[K.P.]

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[NP]