Summer may not be here yet, but things are already heating up in Israel with the shekel hitting a three-year low in the U.S. dollar/shekel exchange rate, as well as a new Israeli banking industry policy change by the Bank of Israel. Plus, El Al is hitting the beach three times a week, and our take on how this Thursday’s U.K. election might affect prices in sterling. Keep reading.
From the IsraTransfer Trading Desk
A lot has happened in the U.K. since the election was called about 6 weeks ago, most notably two terrorist attacks. Previously, it was expected that the Tories were in position to have a massive majority, however, if you listen to the polls (which got Brexit and Trump victories VERY wrong!), the Tories lead is now very slight. We are of the belief that the Tories will still score a large victory, but in the event of a hung parliament we would expect sterling to suffer. Conversely, if the Labour party were to prevail we think it could have another (albeit to a lesser extent) Brexit effect on sterling. With the election due to take place this Thursday, only time will tell. Stay tuned.
Israeli Economy Snapshot
While the shekel continues to show its strength, the U.S. dollar continues to weaken, resulting in the lowest dollar/shekel exchange rate in three years. Elsewhere, the Bank of Israel kept its interest rate unchanged, furthering belief that changes are unlikely for the forseeable future.
Banking in Israel
Looking to improve effectiveness, Bank of Israel is adding restrictions on the number of board directors Israeli banks will be permitted, along with new enhanced career experience requirements for directors, including IT. Learn more…