The Treasury acted to stimulate Israel’s exports by devaluing the shekel by nearly 7 percent this week.
A 6 percent devaluation had been predicted Sunday, when the new shekel was reduced relative to a “basket” of European currencies.
At noon Monday, however, it stood at 2.192 shekels to the dollar, a 6.67 percent devaluation from 2.055 last Friday.
The higher-than-expected devaluation was due partly to the strengthening of the dollar on the world market last weekend. The new exchange rate against European currencies is 2.4252 shekels, 5.79 percent lower than the previous rate.
While the devaluation is expected to help Israeli exporters, consumers may suffer. The inflationary effects of the cheaper shekel will more than offset the 3.7 percent cost-of-living increase to be paid April 1.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
