The Israeli shekel strengthened sharply Wednesday, bringing the basket of currencies to within 1.5 percent of the currency band's lower limit, Haaretz said Thursday.
This unprecedented situation may call for the Bank of Israel's involvement in the foreign currency market, said the Israeli paper, adding that the central bank last intervened in the market in 1998.
The shekel's proximity to the lower limit of the fluctuating currency band has brought the discussions over the necessity of the band into the public domain.
Over the past week, the arguments have bounced between the treasury's proposal to reduce the slope of the band from 2 percent to 0 percent (i.e., not sloping at all) and calls for a downward sloping band, as voiced by Bank of Israel Governor David Klein, quoted by Haaretz as saying -- Albawaba.com
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