Moti Bassok, Dafna Maor and Eytan Avriel, Haaretz Correspondents: Markets fear central bank's buy of dollars won't stop U.S. plunge
Talkback
Title: You mean Israel cannot Name: Chris Linthwaite City: State:
afford to buy £100 million a day to reduce the exchange rate by 5 cents? Problem is the market will be expecting the government of Israel to intervene each and everytime the exchange rate gets to $3.40, because that is what the market will wxpect, as far as they are concerned £3.40 is the threshold as decided by the government. If this threshold is crossed, and remember it was the Israeli Government that decided it, it will cause a run on the Israeli currency. In that case how is Israel going to afford the bombs and the guns to kill Palestinian children? Interesting times