A Bank of Israel plan to buy government debt securities pushed the exchange rate to a level last seen in August, 2007.
The shekel-dollar exchange rate is jumping 1.7% to NIS 4.145/$, and the shekel-euro rate is up 0.69% to NIS 5.2335/€.
The Bank of Israel's announced yesterday that it will begin to intervene in the secondary market for government bonds by buying government bonds of various types and maturities.
The Bank said that its goal for the program is to increase the liquidity provided to financial institutions, businesses and households and enhance the effectiveness of monetary policy. The Bank of Israel added that it expects that this step will extend the effectiveness of monetary policy onto longer interest rate maturities.
The plan, combined with general strength in the dollar in global trading, is pushing the shekel-dollar rate to a level last seen in August, 2007.
Published by Globes [online], Israel business news - www.globes-online.com - on February 17, 2009
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