Jerusalem Report

Strong shekel blues

Has the Bank of Israel thrown in the towel in its war against the appreciation of the shekel?

BOI Governor Karnit Flug is keenly aware of the dangers of ‘Dutch disease’
Photo by: REUTERS/Ronen Zvulun
I’ve got the strong shekel blues
Exports too dear
Economy’s slumpin’
Big trouble, I fear
Karnit’s battlin’
Buyin’ that buck
Ain’t makin’ no difference
I’m plumb out o’ luck

ISRAEL’S ECONOMY is beginning to sing the blues, in part because of its currency.

Generally, states get into trouble when money flees the country and their currencies collapse. This happened to Mexico in December 1994, Argentina in 2001, Thailand in July 1997, Brazil in 1999, Russia in August 1998, and even to Britain, in 1992.

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