Bank of Israel Governor Amir Yaron stated that Israel s war with Hamas in Gaza will have fiscal implications, but the country s solid fiscal position should make it manageable. Yaron noted that Israel has historically been able to absorb the costs of military conflicts and return to a declining debt-to-GDP ratio. While there will be an impact on real economic activity, Israel s economy is strong and stable with robust foundations. The central bank is implementing various policy tools, including selling foreign currency and providing liquidity, to maintain stability during the conflict. Yaron also called for governments to combat financial transactions by terror groups.