Capital markets did not need to turn to the Bank of Israel for intervention.
Foreign currency trading exceeded $101.3 billion in May 2007, an all time high, and $23 billion more than traded in April. Trading by foreign financial institutions totaled $62.7 billion in May, trading by the business sector totaled $26.8 billion, and trading by Israeli banks totaled $11.8 billion, the Bank of Israel reported today. Foreign currency trading by Israeli banks in May was also an all-time monthly high.
The foreign currency market handled the huge demand independently, without intervention by the Bank of Israel. This is seen as an indication of the market’s strength, the economy’s integration with the global economy, and the local market’s ability to handle huge foreign currency trading volumes without crises or financial shocks.
The shekel depreciated by 0.22% against the dollar in May. However, the shekel appreciated 4.54% against the dollar in January-May, and by 10.57% over the past 12 months.
Published by Globes [online], Israel business news - www.globes.co.il - on June 3, 2007
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