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Analysis - Bank of Israel vs the FX market: Can $30 billion stem the shekel's ascent?


5 Min Read
JERUSALEM/LONDON (Reuters) - The Bank of Israel spent $21 billion to try to stop the shekel’s steep appreciation in 2020, with little success. How about $30 billion in 2021?
FILE PHOTO: An Israeli shekel note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White
That’s the paramount question for the central bank as it steps up its seemingly never-ending battle against huge foreign inflows and a host of other factors boosting a shekel that is increasingly hurting exporters at a time when the economy is already struggling from the coronavirus pandemic.
The shekel has firmed versus the dollar seven out of the last 10 years and chalked up gains against a basket of currencies of Israel’s main trading partners, making it one of the world’s strongest currencies. It gained some 8% against the dollar in 2019, and again last year despite central bank foreign currency purchases of $21 billion. ....

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Bank of Israel vs the FX market: Can $30 billion stem the shekel's ascent?


Publishing date: Jan 25, 2021  •  January 25, 2021  •  4 minute read  • 
Article content
JERUSALEM/LONDON The Bank of Israel spent $21 billion to try to stop the shekel’s steep appreciation in 2020, with little success. How about $30 billion in 2021?
That’s the paramount question for the central bank as it steps up its seemingly never-ending battle against huge foreign inflows and a host of other factors boosting a shekel that is increasingly hurting exporters at a time when the economy is already struggling from the coronavirus pandemic.
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Bank of Israel vs the FX market: Can $30 billion stem the shekel s ascent? Back to video ....

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Argentina's honeymoon with IMF about to get a reality check


6 Min Read
NEW YORK/BUENOS AIRES (Reuters) - Argentina’s honeymoon with the International Monetary Fund is about to be tested as it looks to update a $57 billion agreement struck two years ago that failed to prevent a slide into recession and the country’s ninth sovereign default.
FILE PHOTO: IMF Managing Director Kristalina Georgieva and Argentina s Economy Minister Martin Guzman attend a conference hosted by the Vatican on economic solidarity, at the Vatican, February 5, 2020. REUTERS/Remo Casilli/File Photo
The IMF, often the target of angry protests in the streets of Buenos Aires, has looked to soften its tone with Argentina as the center-left Peronist government has restructured over $100 billion with private creditors this year. ....

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