posted by 4x-news on Feb 18

The Israeli Shekel has surged over 15% against the USD in the last 6 months, and by over 20% in the last 2 years. Analysts have suggested that the appreciation is due to the strength of Israeli’s economy vis-a-vis the US economy, which seems headed for recession. In addition, Israeli people have repatriated billions of dollars in capital that had been held overseas and invested it in Israel’s financial markets, which in itself, has exerted much of the pressure on the Shekel. There is now a surplus in the balance of payments, which means more capital is coming in to Israel than is being taken out. As a result, Israeli exporters are getting nervous about the perceived consequences of a relatively expensive currency and are pressuring Israeli political leaders to take action. The Central Bank, understandably, is reluctant to do so. Haaretz.org reports:

“Intervening in the currency market is risky and inefficient,” [said] Bank of Israel Governor Stanley Fischer…earlier this week.