Israel Finance Authorities Open Situation Room Following Brexit

Bloomberg: Israel’s finance ministry and central bank have set up a situation room to monitor developments following the U.K. vote to leave the European Union.

Israel’s TA-25 benchmark index fell to its lowest point since January, and was down 2.7 percent at 12:42 p.m. in Tel Aviv. The 10-year benchmark government bond soared, pushing yields down 12 basis points. The shekel weakened 1.8 percent on Friday to 3.8820 per dollar.

“We have a strong and stable economy that’s prepared to deal with any scenario and any challenge,” Finance Minister Moshe Kahlon said at a cabinet meeting Sunday. “We will continue to follow events closely and we will know how to react to any developments if needed.”

The European Union is Israel’s largest trading partner and any major shocks to the region’s economy could reverberate here. Still, Israel has diversified away from Europe in recent years, increasingly exporting to Asian countries.

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