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Bank of Israel Governor Stanley Fischer. (Ofer Vaknin) Last update - 19:31 16/03/2008 Fischer: Bank of Israel to avoid meddling in int'l currency market By Tal Levy, Haaretz Correspondent Tags: Stanley Fischer  Bank of Israel Governor Stanley Fischer said Sunday that Israel would avoid intervening in the foreign currency market again unless a global crisis erupted. Fischer sought to ease jittery Israeli financial markets on Sunday just days after the bank intervened in the foreign currency exchange for the first time in more than a decade. "We will continue to depend on the market, except when there are unique c Advertisement ircumstances. We hope that the intervention will be rare," he said. "We live in a difficult era in the international market, with the financial crisis in the U.S. and its implications all over the world." Fischer's move to prop up the ailing dollar last week caught local investors off guard. The U.S.-educated economist had previously said it was unlikely he would intervene in the currency market. Speaking at a hastily convened news conference Sunday, Fischer said a sharp plunge in the dollar's value recently had prompted him to take action. "We are seeing a foreign currency that is not anchored and we started to witness patterns of pack mentality, he said. Based on that, we decided to intervene ... This is not an emergency situation, it is a unique situation." Fischer said the central bank's principal goal will continue to be to keep proces stable and preserve inflation rates at the target level set by the government. "We also have the goals of economic growth and employment in the Israeli economy. We will continue to take measures to support growth, while this does not oppose the safeguarding of stable prices," Fischer said at a press conference following the central bank's buying up some $600 million recent days in a bid to check the greenback's rapid descent. Last Thursday, when the central bank intervened in foreign currency trading for the first time since 1997, the dollar had reached a low of NIS 3.35, an 11-year low. Fischer continued: "We have seen over the past months a very difficult period in the international economy, mainly as a result of the financial crisis in the United States, and the consequences of the economic growth in the U.S. on all countries in the world." "We see these consequences also in the continuous decrease in the dollar value in relation to almost any other currency in the world, and the fluctuation in the finance markets in the U.S. and the world." Fischer reiterated that "we are going through a very hard time of instability and uncertainness in the global market. This phenomenon is impacting the Israeli market as well." Related articles: Treasury finally admits: Israel facing economic slowdown Markets fear central bank's buy of dollars won't stop U.S. plunge Israel Bank intervenes in foreign currency market, buys dollars Dollar dips to new low Bookmark to del.icio.us   The Chancellor's visit Angela Merkel arrives in Israel to 'open new chapter' in bilateral ties. London paying Netanyahu says PR trip to U.K. wasn't funded by Israeli taxpayer.   1.   Good Idea 17:57  |  Mark Lincoln 16/03/08   2.   Israel cannot play the financial markets 19:04  |  Chris Linthwaite 16/03/08   3.   Gentlemen, as I understand it 19:38  |  Mark B. 16/03/08   4.   Mark B. - buying dollars 01:05  |  Mark Lincoln 17/03/08   5.   The right step at last 03:37  |  Ofer 17/03/08   6.   What % of exports go to US? 04:55  |  Lemmings Hotline 17/03/08

Today Online IAF resumes Gaza strikes, kills 3 Islamic Jihad men Responses: 180 Gideon Levy: Barak trying his best to ruin peace process Responses: 107 Netanyahu: I acted for the state, not at its expense Responses: 95 Obama asked to explain after his minister 'damns' America Responses: 146 Rosner's Domain If you marry them, you have a better chance of keeping them State Department: UN measures fuel anti-Semitism (WTR) Poll: Is the "road map" still relevant? Neocons and the cultural proclivity of Jews (WTR) General Fraser and the third whiner More Headlines 02:48 Next IAF chief: Presence of IDF in Gaza will stop rocket manufacture 03:09 22 right-wing activists detained after storming E. J'lem village 03:08 Court case reveals how settlers illegally grab W. Bank lands 21:56 PA to rebuild home of W. Bank militant leader killed in IDF raid 02:56 Ashkelon to have longer warning time before rocket fall 23:10 Jews, Arabs, Americans join Jerusalem Palm Sunday march 23:28 Holocaust survivors march from Krakow ghetto to mark 65 years since liquidation 19:17 Merkel arrives in Israel to 'open new chapter' in bilateral ties 19:31 Fischer: Bank of Israel to avoid meddling in int'l currency market 03:59 Court remands man accused of raping mentally disabled woman 18:52 Syrian FM: Israel gained most from Mughniyah's assassination 04:05 Arab woman survives honor killing, avoids being 9th victim in family 14:02 Report: Eichmann intervened to save 800 Jews in Berlin in WW2 04:09 Illegal immigrants' clinic closes in protest of state's inactivity Previous Editions Select Day 16 mar 14 mar 13 mar 12 mar 11 mar 10 mar 09 mar 07 mar 06 mar 05 mar 04 mar 03 mar

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