Founding of Bank of Israel

The Bank of Israel is the central bank of Israel, responsible for monetary policy, supervision of the banking system and the issuing of the national currency. It was created by law a few years after the state was founded, taking over functions that had been carried out by commercial banks. David Horowitz, an economist who had played a key role in the economic planning of the young state, served as its first governor. The bank's tasks include setting the interest rate to keep inflation under control, managing foreign currency reserves, and acting as banker to the government. It is based in Jerusalem, with a branch in Tel Aviv.

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