The dollar continues to deteriorate, approaching a low of NIS 3.1

Even today, the dollar continues to lose ground in Israel. This morning (Wednesday) the American currency dived to a rate of NIS 3.136, and continues to approach its next new low, NIS 3.1, which was last recorded about 25 years ago reports Ynet. 
The deterioration of the dollar is due to the market flooding of dollars in Israel, the entry of money from natural gas production, dollar conversions of companies to shekels to pay salaries and tax advances in three days, and zero foreign currency buying by Israelis.
Bank Leumi's chief economist, Dr. Gil Befman and Leumi's interest rate strategist Dudi Reznik, believe that the Bank of Israel will continue to intervene in the foreign exchange market in the near future. The Bank of Israel is expected to continue its acquisition policy in 2021, in light of the fact that it seems that the use of interest rate tools is no longer effective."
Bank Leumi also said that "the rise in oil prices to the highest level in the last ten months occurred due to the expectation of an increase in the market deficit in the first quarter of the year after the OPEC + decision last week and against the weakening dollar worldwide."
Subscribe for our daily newsletter
Subscribe for our daily newsletter

By subscribing I accept the terms of use and privacy policy