Against the backdrop of a raging, hysterical left trying to badmouth Israel, facts once again strike: the Shekel is booming. Whether one or the other mini-fund no longer wants to invest in Israel is completely irrelevant.
The Bank of Israel set the representative shekel-dollar rate down 0.089% from Tuesday, at NIS 3.370/$. This means, in fair terms and based on the year 2023, that the Sheikel has gained around 4.8% against the US dollar so far. Distrust and weakness look different.
Without a doubt, the world is currently volatile in terms of markets and the Shekel is proving to be a safe haven, albeit a small one. Currently, inflation is 5.3% and interest rates are 3.75%. This means that the money is better invested in currency than in the savings account, which of course is not a recommendation. Because currencies can fluctuate very quickly in uncertain times. The GDP ratio currently stands at less than 61%, what is without doubt one factor for the strength of the Shekel.
And GLOBES writes: “After weakening in December, the shekel has gained 4.8% against the dollar since the start of 2023, and is trading at levels not seen since August 2022.” and even GLOBES must confess: “While headlines warn that capital and foreign investors are abandoning the country, the Israeli currency has actually been strengthening in recent weeks.” Headlines of GLOBES must be added.
CEOs of companies looking for “certainty” and making “certainty” to their major yard stick should ask themselves if they are in the right position, because “certainty”and “anxiety” should not be a majors forces and motives for entrepreneurs or CEO. Its more for fit to a bureaucrat. But maybe some Israeli companies now taking out their money from Israel to seek a windfall profit of the strong Shekel and sell their move as a political correct statement.
The “warnings” are according to Professor Yaron Zelekha, former Finance Ministry Accountant General, exaggerations and do not address the correct mechanics: “The credit rating is the risk assessment that the rating companies attribute to the possibility that the Israeli government will not repay its debts, but since the government’s debt is relatively low, the risk to the credit rating is not significant. The assessments that were heard are mixing between economic and political positions.“, says Zelekha to Arutz Sheva. And concluded: “The Prime Minister and the Minister of Finance came in with a new and fresh spirit that should be welcomed. The first change is the decision to freeze the inputs that are the responsibility of the government, in contrast to the previous one that only fueled inflation. Another change is the intention is to break the power of the monopolies and especially the exclusive importers.”
Thus, a lot of laws are needed to make the costs of living in Israel cheaper and to make Israel’s economy more competitive. And there is a Supreme Court and Justice system whose positions are to strengthen the state and weaken the economy and never cared much about the cost of living and other oligopolies, that need to be brought into balance. Hence, the reform is necessary to save democracy and the economy and make life less expensive in Israel.
“I say to investors: Continue to invest in the Israeli economy; it will be worth your while. In the last 20 years – most, but not all – I have led the Israeli economy. Whoever invested in Israel during these years, profited greatly and whoever continues to invest in the Israeli economy will continue to profit greatly. Israel has been a good place to invest and Israel will be an even better place to invest.“, says Premier Minister Benyamin Netanyahu.