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| Israeli 200 shekel bill |
The Israeli shekel is performing so good over the past few months that the Bank of Israel had no choice this week but to sell down the currency in order to avoid hurting the export industry, according to press reports in New York.
The shekel was the best performer in the past six months among the 31 major currencies tracked by Bloomberg. Much of the gains was attributed to the gas that began flowing from the Tamar field, which is expected to have a favorable impact on the Israeli government deficit.
Yesterday, for the first time in two years, the Bank of Israel intervened in the foreign exchange market, after the shekel U.S. dollar exchange rate, fell to NIS 3.592. One source estimates that the Bank of Israel bought at least $100 million.
Stanley Fischer, who will leave office at the end of June, is credited by some economists as the person who helped Israel weather the global financial crisis by purchasing currency to curb shekel strength and support exports.
The Bank of Israel said it acted in accordance with a declared policy to operate in case of irregular changes in the exchange rate that do not comply with fundamental economic conditions, or when the currency market is not functioning properly.
As we reported recently, after years of relying on foreign imports from neighboring hostile countries for natural gas, Israel, has finally begun using its very own natural gas for the first time, according to a statement made by Israeli Prime Minister Benjamin Netanyahu.
The natural gas has begun to flow from one of the significant gas fields located in Israeli territory.
the Israeli Ministry of Energy said that the gas from the Tamar offshore field started flowing for the first time on Saturday and will reach a processing center on the coast of Israel on Sunday afternoon.
Tamar was discovered in 2009 and has about 8.5 trillion cubic feet of gas. Another field, called Leviathan, is estimated to hold about 16 trillion cubic feet, and is expected to go online in 2016.
Until now, Israel has relied on imports to meet most of its energy needs. The new gas discoveries are expected to supply the domestic needs of Israel for decades and could turn the country into an energy exporter.
“This is not only a significant economic development for Israel. It is a significant security development as well as Israel will not have to rely on neighboring hostile Muslim nations such as Egypt for its energy needs,” Ben Young, 58, a Middle East political expert in New York City told YourJewishNews.com.