Article: Bank of Israel under fire over decade-long currency intervention

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Bank of Israel under fire over decade-long currency intervention

Steven Scheer, 08 March 2017

JERUSALEM (Reuters) – The Bank of Israel has a problem. After spending almost a decade and huge sums trying to curb the shekel, the currency is still rising relentlessly – to the dismay of the country’s exporters.

In 2008 the central bank began what was supposed to be a temporary fix. The plan was to buy large amounts of dollars and halt a rapid rise in the shekel, partly to protect exporters who account for more than 30 percent of economic output and form a strong domestic lobby.

But after purchasing more than $70 billion over the years, the bank is still struggling to soften the exchange rate and prevent Israeli exports from becoming relatively more expensive on world markets. Continue reading “Article: Bank of Israel under fire over decade-long currency intervention”

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