Israeli financial experts said today that the West German revaluation of the mark would have beneficial results on the Israel economy. The West German Government increased the value of the mark by five percent last week.
The State Bank of Israel, it was asserted, had anticipated this move and had built up a reserve in marks amounting to 40 percent of the country’s total foreign currency reserves. It stood to make a clear profit of $5,000,000 through the increased valuation of its holdings in marks.
Recipients here of German restitution payments, compensation and pensions will automatically receive a five percent increase through the revaluation.
Economic sources also said that the mark revaluation would be a spur to Israeli exports to West Germany. These exports will now be five percent cheaper on the German markets and their lower prices, it was presumed, would stimulate demand.
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