There are growing concerns in Israel regarding the foreign currency market as Israel is without a governor of the Bank of Israel, a selection process that is likely to continue for a number of weeks or longer.
Despite the fact the Bank of Israel on Tuesday, 1 Rosh Chodesh Elul 5773 purchased $100 million; the dollar continues to drop against the shekel, closing at $1/3.55 NIS. This rate is the lowest since August 2011. The euro also dropped 0.2%, closing at 1€/4.71 NIS.
(YWN – Israel Desk, Jerusalem)
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5 Responses
It might be better to understand it as the Shekel hitting a high compared to the dollar. Under the Likud/Yesh Atid economic policies (“compassionate conservatism” minus the “compassion”), Israel will have its currency appreciate relative to countries with compassionate (and irresponsible) fiscal policies.
This is bad for Israeli consumers who pay more for imports and bad for exporters whose goods become too expensive. It’s good for American tourists. One should ask whom the government should be helping, Americans on holiday, or Israelis trying to make ends meet.
Simple reason, the U.S. economy has been Obama’d to death and Israel’s economy is strong.
The U.S. economy always ran is cycles, with up’s and down’s, but with overall significant growth. You can’t keep spending at enormous deficit levels and have a real growth economy. When the U.S., is forced to pay higher interest rates or not be able to borrow, everything will hit the fan, if the dollar doesn’t collapse first. Many countries want off the dollar as the worlds primary currency already.
It hurts many people living in Israel who have their income in dollars. The first time I switch dollards, I got 3.99 sheckels per dollar.
Akuperma – you have it backwards. A strong Shekel is bad for exporters, but GOOD for insraeli consumers, who need to pay less in Shekels for imported goods. It’s also BAD for tourists, since they need to pay more in US$ to get the same amount of NIS.
Long term, Israel, as an export-oriented economy, can not afford to have a Shekel that’s too strong. Short term, though, it’s good for the Israeli consumer.
an Israeli Yid
To an Israeli consumer paying in shekels for foreign goods, prices will seem better (my mistake above).
To an American tourist paying in dollars, everything will seem more expensive.
To an American customer buying Israeli goods, prices will be higher (bad for exporters).
For an Israeli institution receiving donations from abroad, they will get fewer shekels than expected.
Wow caN u belive akuperma admited he made a mistake!!!!!!!! Wow!! Maybe slowly ull come around and agree that you where mistaken on so many other stuff!!!!!!!