"Intervention in the foreign currency market is temporary. The moment the crisis passes, we'll stop intervening," said Governor of the Bank of Israel Prof. Stanley Fischer said at the World Economic Forum in Davos today. He added that the Bank of Israel was not trying to defend any specific exchange rate for the shekel.
Fischer added, "We hope that this is part of the exit strategy from the expansionist monetary policy we undertook during the crisis, when we bought dollars on a daily basis. Since then, our intervention has been reduced, and we only intervene when there is extraordinary volatility in the exchange rate. We hope that this is a step back to normalcy."
Fischer added, "The expansion of dollar loans by the world's central banks is part of the return to normalcy."
Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010