Israeli financial markets are remaining calm despite the currency turmoil in Europe.
The Israeli shekel enjoyed stability Thursday amid the monetary crisis that shook the European market when Britain dropped out of the European Monetary System. Bank of Israel Governor Jacob Frenkel predicted that the stability of Israel’s currency would continue.
The calm in the local market was attributed to the shekel!s fluctuation vis-a- vis a basket of currencies. Currency changes within the international arena may impact on each other but do not necessarily affect the balance between the basket and the shekel.
The Tel Aviv Stock Exchange reacted calmly to the dramatic changes in the European markets with a moderate upward trend. Dollar-linked bonds rose by 1 percent Thursday.
But the crisis had an impact on Israeli exporters to Britain, Israel’s second- largest trading partner, who may have suffered losses of up to 15 percent in recent weeks because of the devaluation of the pound. Textile exporters are believed to have been particularly affected.
The authoritative economic analyst of the daily Yediot Achronot, Dov Genihovsky, believes the stability of Israel’s shekel amid sharp currency movements elsewhere may be no reason for rejoicing.
“A lucky country?” he asked rhetorically Thursday.
“Not necessarily,” he wrote. “The bottom line is that this was yet another proof of our detachment from the world economy and our isolation from the world, behind walls of controls, limitations and preferences.”
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.
