The amount of currency circulating in Israel as of yesterday was 2,500,000 pounds more than during the previons week, marking the highest weekly rise for several months, it was reported today.
The total amount of currency in circulation reached nearly 64,500,000 pounds, owing principally to publication of the clothing ordinance and the resultant panicky purchasing by consumers of the about-to-be-rationed items. Another reason for the jump was the spread of an unfounded rumor that bank accounts would be frozen.
An Israel Finance Ministry announcement issued last night said that the increase in currency circulation does not indicate that inflation is in force nor has it any bearing on the government’s financial requirements. Only a small amount of the currency is being used for financial or business transactions, the announcement said, adding that the bulk of the money withdrawn from the banks was transferred to private vaults and safes.
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