The shekel will join the 15 current currencies that are traded and available at commercial banks around the world.
Beginning in April, the shekel will be convertible on international markets, when the Bank of Israel joins the CLS Bank. As part of the membership, two Israeli commercial banks will become clearing members, with clearing accounts in their systems. A third Israeli commercial bank will function as a liquidity supplier. CLS stands for "Continuous Linked Settlement".
The two commercial banks will clear foreign currencies, while other Israeli banks with accounts of foreign banks that are members of CLS Bank will be able to provide those banks with clearing services in shekels using the Bank of Israel's Zahav computerized clearing system.
The Bank of Israel's membership in CLS Bank will upgrade Israel's shekel and foreign currency system of payments, which will become immediate and final for almost any currency.
The Zahav system handled NIS 5 trillion in more than 145,000 transactions during the fourth quarter of 2007.
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2008
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