In the last two years we are gradually replacing these monetary auctions with treasury bills which will be our main instrument for conducting monetary policy vis-a-vis the market as a whole. Judging from the results, the outcome is rather satisfactory: •  Israel enjoys price stability. •  The foreign currency market functions smoothly, with relatively narrow spreads and low volatility.
I appreciate the invitation to speak to you as part of this year’s Banking Outlook Conference at the Federal Reserve Bank of Atlanta.1 I think this year’s theme, Age of Advancement: The Intricacies of a Digital World, captures the dynamic and evolving landscape of our country’s financial system well.