Manufacturers Association of Israel president Zvika Oren has called on the Bank of Israel to stem the slide in the shekel-dollar exchange rate and to set a temporary exchange rate floor of NIS 3.80/$. He said that the Bank of Israel should immediately adopt the foreign currency purchasing policies already pursued by Switzerland and the Czech Republic to improve the competitiveness of their manufactures in global markets.
On Tuesday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.471/$.
In a meeting with Governor of the Bank of Israel Dr. Karnit Flug a few days ago, Oren raised the issue of instituting a minimum exchange rate during 2014. "The governor mostly listened, and did not express her opinion on the matter. I don’t understand how she allows the dollar to fall as it has fallen for a long time. The Bank of Israel has the power to establish a permanent exchange rate through massive dollar purchases, taxing speculators, expand the hedging of Israel debts, and cutting the interest rate by 25 basis points," he told "Globes" today.
"These measures would inject oxygen into the exports and tourism industries. International markets are expected to grow 5% this year, and with including to reduce regulations and improve the business environment, Israel could benefit from the global growth and share in it."
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2014
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