Continuing Depreciation of the Shekel
For more than a year, the USD / NIS relationship has been a hot topic within the international Jewish world. JAFI, among others, was reducing their exposure to currency risk by purchasing forward contracts. Yesterday, at 5 pm in Israel, a milestone was reached. For the first time all year the dollar managed to mark a gain from the year’s start against the shekel.
As I am posting this, the spot market is at 3.903 (9:11 am IST).
Globes is reporting that the dollar will probably continue to strengthen despite signs that the US is entering a recession.
The Jerusalem Post tells us the Haredi factions are demanding more government aid in coalition negotiations to replace dried up U.S. donations.
And when JAFI’s Board of Governors convenes next month, with the USD gaining strength, what exchange rate will figure in to the official calculations?
Stay tuned; with the Chagim behind us, we are in for some interesting weeks in Israel; politically and financially.