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Peak time: The shekel stars against the world's leading currencies Israel today

2021-11-18T21:04:01.299Z


Halted slightly stronger after, according to market traders, the Bank of Israel intervened in trade • President of the Manufacturers Association: "We are keeping our eyes open for disaster" • Erdogan joins the celebration and lowers interest rates


Market traders reported yesterday that the Bank of Israel has not completely weaned itself from foreign exchange purchases, and yesterday boosted demand that prevented the shekel from continuing to strengthen.

After trading in red, the trend changed slightly, and the dollar traded around NIS 3.08;

The euro is trading around NIS 3.49.

The market continues to estimate that the Bank of Israel will no longer be able to support the dollar, the euro and the pound sterling, which traded around NIS 4.15 yesterday - the same currency that already knew a double exchange rate about a decade and a half ago.

In this state of affairs it is clear that the manufacturers are shouting.

Dr. Ron Tomer, president of the Manufacturers Association, said yesterday: “We are opening our eyes to disaster.

It should be remembered that purely cosmetic measures will not prevent the collapse of Israeli exports, and therefore many resources must be invested in strengthening the competitiveness of Israeli industry against the background of the anomaly in the exchange rates.

Without the investment of resources, the manufacturing industry could collapse, and high-tech would copy activity to economies with a reasonable exchange rate. "

Last week, Finance Minister Avigdor Lieberman revealed at a conference of the Bureau of Real Estate Appraisers in Eilat that he was about to publish a series of concessions to exporters, who repaired them for the strengthening of the shekel.

All options have been exhausted

As stated, the Bank of Israel continued to intervene in parallel trade, albeit in a much more minor way, but it is clear that salvation for exporters will not come from this direction.

The Bank of Israel has pretty much exhausted its options by buying foreign currency, even if it has not yet admitted it.

The Bank of Israel no longer needs to intervene too much, because the shekel is not strengthening as a result of speculation - it is strengthening because it accurately reflects the situation: Israel has not financed corona spending by printing money - US and Europe yes. Slower than the Israeli economy.

Israel's economic locomotive, high-tech, continues to boom, and even real estate is boiling. Israel enjoys the size advantage and manages to overcome the supply problems that are more noticeable in the world's major markets, and especially enjoys a constant price of natural gas from domestic production.

Inflation expectations in the capital market, as published by the Bank of Israel, are approaching the upper target range and now stand at 2.8%.

This is inflation we have not seen before since 2010.

Even Turkish President Erdogan understood the interest rate frenzy and yesterday once again lowered the interest rate in Turkey to 15%.

It sounds like a lot, but it's a strange move when inflation there exceeds 20%, and the Turkish lira exchange rate continues to crash.

Source: israelhayom

All news articles on 2021-11-18

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