Israel Government Urged to Clarify Country’s Monetary Situation

Several far-reaching investment schemes for Israel planned by investors in the United States and Canada have been postponed pending clarification of the monetary situation in Israel, it was reported here by Dr. Yeshayahu Foeder, chairman of the board of directors of Bank Leumi.

Dr. Foerden said that “it is high time for the Government to declare in unambiguous terms that it will not devaluate the currency during the present term of the Knesset (Israel’s Parliament), or to carry out devaluation forthwith and without hesitation.”

In demanding that “some decision either pro or con be made” with regard to the monetary situation, the Bank Leumi chairman stated that “the present condition of insecurity and uncertainty, with the myriads of rumors and hints from various sources is most undesirable”. He added that the rumors about devaluation of Israeli currency had caused a sharp decline in the demand for Israeli securities.

Meanwhile, it was announced here today that Israel’s foreign currency receipts for the first six months of the current fiscal year which began last April 1, increased by 12. 5 percent. Figures released today by the Treasury showed that receipts during the period amounted to $397,000,000 compared with $353,000,000 during the same period last year.

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