The possibility of a new U.S. dollar crisis and rumors that the British pound sterling may be devalued were discounted yesterday by Israeli financial authorities. Moshe Sanbar, Governor of the Bank of Israel, said he did not foresee any change in the dollar to which the British pound is pegged. “The American economy is soundly based and one should not expect a deterioration in the status of the dollar,” he said. He described the dollar speculation in some European markets as “of a local character.”
But Israeli banks took the precaution of limiting their foreign currency transactions. British pounds were exchanged for tourists only and a limit of 50 pounds per person was set. Other European currencies were limited, but to larger sums. The black market cost of pounds sterling and dollars remained steady. The price of gold declined somewhat but not enough to require attention from financial circles here. Sanbar said that speculations regarding European currency will have no bearing on Israel’s currency.
JTA has documented Jewish history in real-time for over a century. Keep our journalism strong by joining us in supporting independent, award-winning reporting.
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.
