The Israel Government, continuing its liberalization of foreign currency controls, announced today an easing of restrictions on importation of passenger automobiles.
The liberalization began Sunday with announcement that Israel travelers will be able to buy foreign currency up. to $1 each from banks at practically a free rate of around two and a half pounds per dollar.
The relaxation on importation of cars provides that both new and used foreign-made automobiles will require only a formal permit for importation. However, such imports will be liable to heavier import duties than in the past. Under the new regulations, anyone in Israel wishing to import a car will be able to obtain the necessary foreign currency at the official rate of 1.8 pounds per dollar.
On entry of the car, however, the buyer will have to pay a duty of up to 11 Israel pounds per kilogram of the weight of the car. Under this arrangement, a 1958 car of the lowest-priced standard American makes would cost upwards of 14, pounds which is $7,7 at the official rate and $5,6 at the free rate.
Another easing of currency controls was indicated in a ruling that the free purchase of $100 by travelers will be available also for certain payments by Israel citizens for obligations abroad, including the support of aged parents, insurance premiums and certain imports.
Because Israel received permission from the International Monetary Fund for the new arrangements, it was widely predicted that the free two and a half dollar rate would become the new official rate of exchange after the national elections in 1959.
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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.
