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Bank of Israel to buy more US dollars
Jul. 10, 2008
JPost.com Staff , THE JERUSALEM POST
The Bank of Israel will increase the rate of purchasing US currency to $100 million per day beginning Thursday, the bank announced.
The US dollar was being traded at NIS 3.22 on Thursday afternoon, a rise of one agora over the morning hours' NIS 3.21 exchange rate.
The bank noted that the plan to increase the US currency purchases was part of a plan to increase foreign currency reserves to $35-40 billion.
In March, the Bank of Israel purchased US dollars for the first time in 10 years, with an intention to stop the shekel from growing much stronger against the US currency.
The exchange rate on Thursday morning, 3.21, was the lowest rate in the past 12 years.
The bank's statement Thursday increases the level of foreign exchange rate purchases by 300 percent.
Following the statement, the exchange rate immediately jumped by 10%, or nearly NIS 0.10, to NIS 3.23 per US Dollar.
The euro also strengthened against the shekel on Thursday, increasing 0.64% to 5.24 shekels per euro.
http://www.jpost.com/servlet/Satellite?cid=1215330929125&pagename=JPost%2FJPArticle%2FPrinter
Shekel-dollar rate dips below 4
The last time the rate fell below the NIS 4/$ level was on May 24.
Michal Yoshai 1 Oct 07 09:25
The shekel-dollar rate has fallen below NIS 4/$ this morning for the first time since May 24, when the closing representative rate was set at NIS 3.999/$. Trading in foreign currency options yesterday reflected a 0.3% fall in the shekel-dollar rate compared with the representative rate last Friday.
The weakness of the dollar against the shekel is in line with the global trend as it continues to fall against other leading currencies. The dollar's fall amid the recent crisis in the US sub-prime market was compounded further two weeks ago by the interest rate cut by the US Federal Reserve Board.
Published by Globes [online], Israel business news - www.globes.co.il - on October 1, 2007
Shekel appreciates sharply following Fed rate decision
The US Federal Reserve Bank lowered interest rates by 0.5%, and US markets surged.
Globes' correspondent 19 Sep 07 09:51
The shekel is gaining ground sharply against the dollar, with the shekel-dollar exchange rate falling 1.3% to NIS 4.05/$.
Nice read...thanks!
Lovin' the shekel: It isn't just that the dollar is feeble, says Morgan Stanley
25.4.07 | 12:02 By Tal Levy
Get it straight: "The shekel's appreciation is not just about the dollar's weakness," Morgan Stanley begins its review of the local currency, which has appreciated by more than 8% against the greenback in the last 12 months.
Israel's macroeconomic and structural features are more important than the dollar's weakness, though that's a factor too, postulates analyst Serhan Cevik.
"With fiscal normalization and greater specialization in higher value-added sectors, the Israeli economy has enjoyed a marked acceleration in real GDP growth and structural shifts in the balance of payments," he writes.
No wonder the shekel has been powering ahead, to some dismay at the Bank of Israel. The improvement in Israel's current account balance, despite the surge in commodity prices, is the core of Cevik's argument that the shekel is genuinely strong, he explains.
Cevik, who routinely covers Israel for the investment bank, has been noting his high esteem for the shekel for some time. Back in August 2006, he wrote a review about the amazing shekel, writing that it was still trading at a discount of 12.5% against the dollar.
At the time, the shekel-dollar exchange rate was NIS 4.40 and Cevik predicted that it would sink below NIS 4.
This morning as of writing, the dollar is sinking 0.35% against the shekel to NIS 4.054.
The Bank of Israel has been trying to weaken the shekel, in order to boost inflation - which has been negative - back into the realm of price stability. But wielding its only real weapon, interest rate cuts, hasn't worked so far, which Cevik points out that he predicted.
"This approach may not necessarily be effective in the short run," Cevik writes. He believes inflation will be restore to its target range, at some point, because present real GDP growth at 8% in annualized terms in the fourth quarter of 2006, outstripped Israel's actual potential growth rate, which is 4-5%.
http://www.haaretz.com/hasen/spages/852073.html
The dollar is struggling big time right now to ALL currencies it appears...ole well, better days are ahead...I HOPE! RJ
Dollar dropped 0.15% more against the shekel to close at NIS 4.129
05.4.07 | 14:10 By Tal Levy
The U.S. dollar retreated another 0.15% against the shekel on Thursday to close at NIS 4.129, its lowest level since June 2001.
The forex trading day on Thursday was truncated because of the Passover holiday, ending at 12:30 instead of 15:30.
A trader at Excellence-Nessuah, Ilan Engel, noted that the moment dollar broke through the resistance level of NIS 4.15 on the downside, it began to slide fast.
Trading on Wednesday had been characterized by stop-loss orders kicking in, Engel said. "We saw orders at the level of NIS 4.15 per dollar, each amounting to tens of millions of dollars," he said.
The dollar sellers were mainly Israel's banks and foreign investors, while buyers showed up from the business sector. In the short run, many expect the shekel to continue to climb against the greenback.
Engel also noted that because of the protracted Passover break, market players hadn't had a chance to move until yesterday, which explained the intense volatility in both the FX and the stock market.
http://www.haaretz.com/hasen/spages/845936.html
USD rallying to NIS 4.161 in Sunday shekel-dollar options trade
01.4.07 | 15:43 By Tal Levy
The dollar is rallying in shekel-dollar options trade from its nearly six-year low hit on Friday. The shekel-dollar options trading Sunday on the Tel Aviv Stock Exchange reflect an exchange rate of NIS 4.161.
The greenback has been creeping down for a year now. Just 12 months ago it was trading at NIS 4.70.
While it hasn't done well in world markets in the last year, over in Israel, the shekel has proved extraordinarily strong, despite the Bank of Israel's efforts to weaken the local currency. The shekel's strength is responsible for the negative inflation in 2006, minus 0.1%, while the government's price stability target range is 1-3%.
To weaken the shekel, the Bank of Israel has been cutting interest rates. But it hasn't worked, as foreign investors continue to buy shekels to make investments in Israel.
In world markets the dollar weakened at the end of last week to 1.3354 per euro.
In other Bank of Israel news, it said today that Israel's foreign currency reserves totaled $30.5 billion at the end of March 2007, down $311 million from the end of February.
http://www.haaretz.com/hasen/spages/844595.html
maybe time to roll our dollars OUT of dollars..and INTO something alot better??
USD to ILS (N/A:USDILS=X) Delayed quote data
Last Trade: 4.1980
Trade Time: 10:10AM ET
Change: 0.0000 (0.00%)
Prev Close: N/A
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I can get shekels at my bank for a $7 fee, overnight for $10. But specifically told that they wouldn't take them back.
USD to ILS (N/A:USDILS=X) Delayed quote data
Last Trade: 4.1808
Trade Time: 5:16PM ET
Change: 0.0000 (0.00%)
Prev Close: N/A
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Day's Range: N/A
52wk Range: N/A
Bid: 4.1808
Ask: 4.1908
USD falls to 5-year low vs the shekel
20.2.07 | 09:45 By Tal Levy
The dollar is weakening by 0.1% against the shekel in early trading on Israel's currency market, but that small dip is enough to lower the USD to 4.177 shekels.
On December 14, 2006, the dollar sank to NIS 4.176 in local trading. It was the lowest exchange rate posted for five years. The greenback had dipped even lower during the session that day, but clawed back a bit of ground before the official exchange rate was set.
The dollar has been sinking against the shekel since Thursday, when the resistance level of NIS 4.22 was breached, says Ilan Engel, manager of the Excellence Global Markets foreign dealing room. The trigger, Engel believes, was massive conversion of dollars into shekels ahead of Oil Refineries' privatization yesterday, while in parallel the dollar weakened in world markets.
Right now, also, players are highly optimistic about Israel's economic prospects for the year. Analysts have been raising their growth forecasts for 2007, to around 5%, and S&P raised its outlook for Israel sovereign credit rating, indicating that an upgrade could be in the offing.
"Yesterday we saw foreign investment banks buying dollars and selling shekels," says Engel, adding that trading turnovers in the forex market were relatively high yesterday, though there had been no trade on Wall Street. Also, he said, the market is in waiting more for the interest rate announcement due Monday.
While Israel's economy is booming, which supports the shekel, over in the States investors were dismayed to learn that the gargantuan American trade deficit is bigger than ever, that the influx of capital to the U.S. is lower than expected, and that retail sales were in a slump. Also, building starts were slow, Engel points out. The upshot is that the dollar is weakening in world markets, and here as well.
http://www.haaretz.com/hasen/spages/828158.html
USD to ILS (N/A:USDILS=X) Delayed quote data
Last Trade: 4.2268
Trade Time: 4:59PM ET
Change: 0.0000 (0.00%)
Bid: 4.2268
Ask: 4.2368
Give me the link and I will paste it or the site you are on.
If I could figure out how to get the yahoo chart to copy and paste - a five year chart shows the shekel gaining ground with some major rolls. It's a downtrending channel, but thats good in this case, unless you are in Israel buying dollars.
USD to ILS (N/A:USDILS=X) Delayed quote data
Last Trade: 4.2283
Trade Time: 4:58PM ET
Change: 0.0000 (0.00%)
Prev Close: N/A
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Bid: 4.2283
Ask: 4.2383
The shekel is slowly gaining value against the dollar.
USD to ILS (N/A:USDILS=X) Delayed quote data
Last Trade: 4.2560
Trade Time: 10:23AM ET
Change: 0.0000 (0.00%)
Prev Close: N/A
Open: N/A
Bid: 4.2560
Ask: 4.2660
Last Trade: 4.2450
Trade Time: Feb 2
Change: 0.0000 (0.00%)
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Open: N/A
Day's Range: N/A
52wk Range: N/A
Bid: 4.2450
Ask: 4.2550
52 week range 4.70 - 4.2550
$1 = 4.70 shekels $1 = 4.25 shekels
Essentially, the shekel is gaining value compared to the dollar at this time and has for the past year.
Just a thought, from personal experience. All this paper we are collecting, needs to go somewhere safe. Security box at the bank is my bet. The fire boxes out there are pretty worthless. Unless you wanted to invest major money in a personal safe.
Additional thought on the coins, face value is the key and coins are a bulk item. However, the collector in me is starting re-awaken....
The coins look well designed. They are fun to collect, but in collecting coins and currency for numismatic value you focus on quality and not quantity. So condition, material, and numbers minted are the big factors in determining value. I've seen sets on sale on Ebay now of the coins, old and new series, they are tempting, but won't have the kind of investment value as in hoarding large numbers of banknotes with the hope of increased valuation.
On a numismatic level, I don't believe the coins will have much investment value. Too many coins are minted in modern series, so unless there are errors, not much collectors value. Face value is what's important to us. I collected foriegn coins and currency for the fun factor. If you are interested in numismatic values, collect old U.S. coins. There would be foreign coins of value around, but from the 1800's. Had a german .05 equivalent worth $50 bucks.
Lost all my collection in a house fire, including some shekels. Fire boxes are useless. LOL
How do you like the coins. I think you said you are a coin collector if I am not mistaken. This investment is years away from payoff so we have plenty of time to accumilate.
The ibox is looking good. Great pics! I will be obsessing until I can get a few tucked away. Very promising speculation and interesting as well.
Yeah, I saw that as well. Their prices are skyhigh. They are selling the Iraq Dinar 25K note for $45. That's rediculous.
Upon further investagation, the banknotes.com is'nt really a good deal, plus they only offer the old Manat. The new Manat started in feb 2005. They have old stuff. Their prices are a little HIGH, as you can see on other curriences also. At least it shows the pictures of the notes that you are buying.
If anyone can find the New Manat let me know!
Thanks, I'll check it out.
Check this out!
I've been looking at this site banknotes.com and they have alot of currencies for sale, including the ever elusive Azerbaijan's Manat. Now you want the new Manat AZN, not the old AZM. Check it out! They also have the Israeli Sheqalim, again you want the new not the old. Something to do during quite time...
I like your attitude. A positive spirit is what IHUB needs.
Thank you. I will try to help in any way I can!
Yeah there,at the banks. The Central Bank of Israel or one of the UK sites I was at indicated that 80,000 ILS was the red flag amount. But at .24 @ $ it will need to be accumulated slower anyway and for a long time. I did see a chart yesterday, couldn't get it to copy, that showed the valuation of the shekel slowing creeping up in last few months. Oil will be the factor.
You can ceck your email for verification for IHUB and up your post to 15 per day.
I believe this currency has a lot of potential with their oil drilling going on. I do forsee this being years away to cash in though. But I bet we can just go to our local bank and get some.
Understand. Do appreciate your sharing of information. Post as you can. Thanks.
Not excatly sure. I ordered $300 worth, but have not recieved them But will find out later. I am limited to my responses, only 3 a day.
Where there pictures? I haven't figured how a lot of guys put stuff in their messages. Anyway, the coins would be fun - I used to collect foreign coins - but any bulk would need to be paper. Did the chase bank carry the coins or just paper?
Check this out Israeli new sheqel
Israeli new sheqel
שקל חדש (Hebrew)
1 sheqel coin
ISO 4217 Code ILS
User(s) Israel, Palestinian Authority
Inflation 1.3%
Source The World Factbook, 2005
Subunit
1/100 agora
Symbol ₪
Plural sheqalim or shekalim
agora agorot
Coins 5, 10, 50 agorot, 1, 5, 10 sheqalim
Banknotes 20, 50, 100, 200 sheqalim
Central bank Bank of Israel
Website www.bankisrael.gov.il
The Israeli new sheqel or New Israeli sheqel - שקל חדש(abbr. NIS; symbol: ₪; also spelled shekel; pl. sheqalim or shekalim - שקלים) is the currency of Israel. It replaced the Israeli sheqel in 1985 at a rate of 1000 Israeli sheqels per 1 New Israeli sheqel. The ISO 4217 code for the NIS is ILS. The NIS is divided into 100 agorot (sing. agora).
In Hebrew, the NIS is called "שקל חדש" (Sheqel Khadash), and is usually abbreviated ש"ח (pronounced shaḥ). The symbol for the NIS is ₪, a combination of the first Hebrew letters of the words sheqel (ש) and khadash (ח).
Since January 1, 2003, the NIS has been a freely convertible currency.
Coins
Coins exist of:
5 agorot
10 agorot
50 agorot (½ new sheqel)
1 new sheqel
2 new sheqalim
5 new sheqalim
10 new sheqalim
The 1 agora coin (issued in 1985) was abolished in 1991. In late 2004, the Bank of Israel announced a plan to issue a 2 NIS coin which was realised in August 2006. [1]
Banknotes
Denominations exist of 20, 50, 100, and 200 NIS. Originally there were also banknotes of 1, 5, and 10 NIS. These were replaced by coins in subsequent years. A plan to issue a 500 NIS banknote, carrying the portrait of Yitzhak Rabin, was announced shortly after Rabin's assassination in 1995. However, due to low inflation rates, there is currently no need for such a banknote, and it is not expected to be issued in the foreseeable future.
Thanks for the info! Chase seems the place for everything.
That was my final conclusion this afternoon. The few sites I found were more tourist type, moving to Israel exchanges anyway. My banker wasn't in so I'll catch him later and ask.
Hi, my name is Mark I am a new member who has been watching the discussion on the Dinar, Dong and the Sheckel for awhile now. And please don't worry, I won't ask where to BUY the Dinar AT, or when it's going to reval. I have purchased all three so far. The best and safest place and price is Chase Bank. Not only that, no shipping cost. They only have the Dinar and Sheckel though. When I bought it was $863.70 to 1 million Dinar. You can pick the Sheckel up at 360 to @$95. Chase Bank! No shipping cost!
Short the Shekel?
Four reasons to resist "something for nothing".
Jonathan Lipow 1 Feb 07 13:12
The Bank of Israel’s recent reduction of interest rates to 4.25% raises a question: would this be a good time to short the shekel and bet on the US dollar? The answer is "no".
The case for shorting the shekel is based on the difference between nominal interest rates in the US and Israel. With the dollar rate at 5.5%, investors could supposedly earn themselves a tidy profit by borrowing cheaply, in shekels, and investing in short term dollar instruments. As an added enhancement, if such “carry trades” caught on, the shekel would devalue offering those bold enough to act now additional profits.
Such a trade sounds appealing and even seductive. Who can resist “something for nothing?” Well, try to resist, because there are four problems with the trade outlined above.
Firstly, who said that interest rates were actually higher in the US than they are in Israel? Real interest rates, best measured by comparing the yields on inflation-linked government bonds, are substantially higher in Israel than they are in the US. This makes it attractive to bet on the shekel rather than the dollar.
Secondly, it generally makes sense to short currencies that are over-valued based on fundamental “purchasing power parity” metrics. Yet there is no sign that the shekel is overvalued. While a case could have been made for shekel overvaluation as recently as 2000, the substantially lower inflation rate experienced by Israel relative to more normal countries in the interregnum has largely dealt with the problem. Today, the shekel is reasonably valued.
Thirdly, it makes sense to short the currencies of countries experiencing severe balance of payments problems. Israel, of course, is as far from facing a balance of payments crisis as is possible. The country is a large net creditor and runs huge current account surpluses. Further, a good portion of Israel’s foreign assets are held by the Bank of Israel as completely liquid currency reserves.
Finally, variations in central bank policy, as well as variations in the personalities of central bankers, should play a central role in the calculus of any “would be” currency trader. So let us consider the differences between the US Federal Reserve and the Bank of Israel.
The Fed is run by Ben Bernanke. While no “inflation dove,” Bernanke clearly tries to strike a balance between price stability and other “minor” considerations such as unemployment and economic growth. The Bank of Israel, however, is run by Stanley Fischer, widely regarded as one of the world’s most doctrinaire proponents of price stability.
Now, we cannot know what challenges face the world economy in the future. It is a safe bet, however, that some financial crisis will roil international markets sometime soon. The reason is simple such crises are like earthquakes. While they cannot be predicted, they simply must take place from time to time.
When faced with a crisis, it is likely that Bernanke will choose the course of action likely to be best for the US economy. Certainly, he would not hesitate to allow the dollar to devalue, or even for inflation to breach his by- now famous “2% comfort zone”, if objective economic conditions justified such a decision.
Stanley Fischer, however, is likely to choose the course of action best for the preservation of price stability. Indeed, as he most recently demonstrated during the Lebanon conflict, his instincts lead him to raise interest rates under crisis conditions. That, combined with the other factors mentioned above high real interest rates and a strong balance of payments position makes the shekel an attractive long rather than short relative to the dollar.
The practical implications are obvious: it’s still a great idea to diversify the portfolio in dollar investments, but a simple hedge to the shekel specifically to those measured in it can be a good idea.
Dr. Jonathan Lipow is the chief economist of Forum FIE, the Israeli distributor of Vanguard and Wellington portfolio management products in Israel. In addition, Dr. Lipow manages the Forum International Equity Fund, a global hedge fund.
Published by Globes [online], Israel business news - www.globes.co.il - on February 1, 2007
http://www.globes.co.il/serveen/globes/DocView.asp?did=1000178688&fid=980
I bet it won't be hard to get them because they are a free country and plus many Amerians travel there every year. I bet you can get them at a travel agency near by.
Everythings British or canadian. My assumption is that it is on the Forex and therefore not going to be found in bulk sites like the dinar. Banks may be our only option. Central Bank of Israel is a neat site with current exchange rates.
From Guardian International Currency Corp.
This is in Toronto
Have pictures with the site, but they didn't copy.
CURRENCY:
The currency of Israel is called the Sheqel (pl. Sheqalim). Sheqel banknotes are issued in the following denominations: 20, 50, 100, and 200 Sheqalim.
Smaller values are issued as coins with 1 Sheqel = 100 Agora.
ISO Code: ILS
ISSUING AUTHORITY:
Bank of Israel
CURRENCY IMPORT/EXPORT RESTRICTIONS:
The import and export of all surrency is free ,
but amounts over 80,000 ILS or equivalent must be declared.
CIRCULATION:
The current series of notes were issued in 1999. Older notes are redeemable until December 2005.
ALTERNATIVE CURRENCIES:
All major currencies accepted
Found a site called WorldFirst that will exchange for Shekels. It has offices in UK and Israel. I believe it is geared toward travel and moving to Israel though. They advertise on their site that they will give a better exchange rate than your bank. UK Banks? Looking like my banker is the next stop.
ILS isn't linked with any of the currency pairs on the Forex trading platforms. Yahoo and FXStreet gives converters, but still no buying access. Checked a few currency sites on the web, but no one offering shekels.
Strong recc you as an assistant. So now you are on the list. Thanks for all the DD, and all of you assistants that want to add to the I-Box, do it all you would like. Thanks for all your DD. GL to all of us investing in these foreign currencies...RJ
Preliminary search came up with nothing for an online site to buy sheckels. Ebay had nothing as well.
Israeli Shekel may be undervalued
Many investors watched the recent Israel-Lebanon conflict with bated breath, in order to gauge how the crisis would affect Israel’s economy. While the conflict will certainly diminish Israel’s prospects for growth this year, economists are predicting that its economy will still expand by a healthy 5%. Venture capital and private equity continue to flood Israel, and Israel’s interest rates remain at an attractive level. Meanwhile, its current account surplus exceeds 3.5% of GDP. In short, economists estimate the Israeli Shekel is undervalued by 13.5% against the USD and up to 30% against a broader basket of currencies. The Business Online reports:
These two trends are likely to continue thanks to strong growth in productivity which is making Israeli goods and services more competitive in the world markets, further boosting the case for a stronger shekel.
We need to find out if Israel is on the Forex and if so we can buy their currncy from our local bank.
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