Bank of Israel’s New vice Governor’s Appointment May Have Positive Influence on Shekel

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Bank of Israel’s New vice Governor May Have Positive Influence on Shekel

Israeli Money

The Israeli market’s speculations have been great by the recent appointment of Dr. Nadine Baudot-Trajtenberg, saying it can have a huge positive impact on the value of Shekel in the future.

At its weekly meeting, the Office of the Bank of Israel has approved the appointment of Dr. Nadine Baudot-Trajtenberg as vice-governor. She will begin her term on March 2 after resigning from her previous position in the private sector. This is the first time that the central bank is run by two women.

A Montreal native, Nadine Baudot-Trajtenberg is an Israeli economist, PhD in economics from Harvard. For over 20 years, she held the position of Vice-President of the Bank Hapoalin as the Senior Director of Investor Relations. She is currently Dean of the Department of Interdisciplinary Center Herzliya, the first private university in Israel education institution economy.

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It is the recommendation of the current Governor of the Bank of Israel, Dr. Karnit Flug that the appointment of Nadine Baudot-Trajtenberg took place. Ministers have also accepted the recommendations of Governor Flug. In a recent press release by the bank, she also said, “The Bank of Israel and the Israeli economy will face many challenges in the years to come, and I am confident that Nadine’s experience and skills will help us deal with them effectively.”

This appointment is believed to be an opportunity to perform a zoom on the Israeli currency, the shekel. At the time of this writing the EUR-ILS is trading around 4.8188 per euro, up around 0.023%. Against the U.S. currency, the shekel has risen 0.05%, trading around 3.5052.

Earlier, the shekel used to be relatively strong against world’s leading foreign currencies. For instance, it rose 6% against the U.S. dollar during the year 2013. Maybe that is why Israel’s central bank wants to place proper measures that would limit this volatile fluctuation rate.

The economy of the Jewish state in fact depends largely on its exports reports. With them being low recently, shekel’s transactions have been on its record low, therefore weakening the Israeli economy. The measures taken to restore economy back to normal may include, for example, the intensification of the dollar purchases policy.

Israel is planning to buy $3.5 billion against $2.1 billion in 2013. It is not only to reduce the level of Israeli currency but also to counter the effect of revenue related to the production of natural gas. The evolution of the shekel will be monitoring throughout the year, as per announced by Flug herself.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com