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Israel Government Satisfied with Effects of Currency Devaluation

August 14, 1962
See Original Daily Bulletin From This Date

Yaakov Arnon, director-general of the Israel Finance Ministry, today appraised the country’s economic situation, six months since the Israel pound was devalued to a rate of three for a dollar, and found that “our economy now stands where we had reckoned it would” at this point. He warned, however: “I can not say the worst is over. Six months is too short a period in which to judge the success of devaluation.”

Mr. Arnon noted there has been an increase in Israeli imports and a relatively mild rise in prices. He predicted a 10 per cent increase in production for 1962. Viewing the employment situation, he noted that overall employment has not decreased and that, despite the large immigration, the number of unemployed has declined both relatively and absolutely.

The official’s appraisal stated that he was even more convinced now than he was last February, when devaluation took effect, that pegging the pound at three per dollar had been the correct move.

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