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Israel Suspends Temporarily the Liberalization of Currency Controls

The Israel Treasury today temporarily suspended a recent liberalization of currency controls making available $100 at a practically free rate. The liberalization applied for Israelis traveling abroad or needing foreign currency for other personal reasons.

The Treasury took the action, it was reported, in an effort to stand firm against demands that the new free rate of two and a half pounds per dollar be recognized as the effective rate for all dollar-linked currencies. This development has been widely predicted.

It was also presumed that all other Israel residents with foreign currency income, including foreign correspondents, who are still forced to sell their dollars at the old rate of 1.8 pounds per dollar would renew their demands for a higher exchange rate.