Subscribe to Print Edition | Tue., March 18, 2008 Adar2 12, 5768 | | Israel Time: 03:05 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Advertising Books Arts & Leisure Business Real Estate Easy Start Travel Week's End Anglo File

Last update - 03:12 17/03/2008 Stanley Fischer: Central bank will continue to rely on market forces By Tal Levy Tags: dollar, Stanley Fischer  The Bank of Israel may have broken an 11-year precedent and intervened in the country's foreign currency market last week, but Israel is no China and exporters must understand that competition will only grow, Governor Stanley Fischer said at a press conference yesterday. "We shall continue to use the tools at our disposal to support economic growth, as long as it doesn't contradict our goal of maintaining price stability," Fischer said after the Bank of Israel bought up an estimated half-billion dollars on the foreign currency market last Thursday and Friday. The Bank of Israel intervened because of a growing feeling that the foreign currency market had lost its anchor, and because of signs of herd behavior in the market, Fischer explained. Advertisement All the central bank sought was to rebalance the market. "Meaning, we added more dollars to our foreign currency reserves," Fischer said. But he took pains to put expectations into proportion: It takes a giant like China with foreign currency reserves of $1.3 trillion to truly sway the markets, he said. "We will continue to rely on market activity, unless we see irregularities, as we did, and we hope intervention will be rare," Fischer said. He also suggested that it isn't the Bank of Israel's job to look after exporters hurting from the strength of the shekel. "Every exporter must take into account that competition will only grow, which is natural in a growing, expanding economy," Fischer said. For a decade the Bank of Israel managed to handle exchange-rate policy without intervening in the foreign currency market, Fischer said. "Recently the shekel began to be less stable, more volatile, even when compared with the fluctuations by other currencies against the dollar," he said. The shekel climbed not only against the hapless greenback but against other major currencies too. Addressing rumors that the Bank of Israel might slash Israeli lending rates by a whole percent, Fischer said various sources were quoting certain central bank officials who propounded a 1% rate cut. "I don't know the officials saying such things, but it's always interesting to read the reports," he quipped, saying no more. Regarding the central bank's reversal ahead of the last rate cut, the governor commented that under the circumstances, the change was necessary. The Bank of Israel must preserve its good name, he said, but it isn't its job to preannounce its decisions and moves. Bookmark to del.icio.us   Facebook face-off Settlers win right to list country as Israel, not Palestine. Shin Bet.com The covert agency has deployed a new weapon: the blog.

Today Online Rightists arrested for storming village of yeshiva terrorist Responses: 168 Next IAF chief: Ground operation needed to stop rocket attacks Responses: 129 Court case reveals how settlers illegally grab W. Bank lands Responses: 110 Facebook face-off: Settlers win right to list country as Israel, not Palestine Responses: 47 Editorial: U.S. pressure for peace is welcome pressure Responses: 65 More Headlines 03:04 Israeli stocks tumble as world markets sink 00:27 Survey: Haniyeh more popular than Abbas in PA 22:27 PA downgrades renewed talks to protest settlement construction 02:28 Slain Jihad operative's son: 'Our entire family has turned Shi'ite' 01:59 Merkel offers 'tough, decisive' language on Iran nuke program 21:27 Israel approves lawsuits against PA over suicide bombings 22:01 Argentine Jews commemorate 1992 Israeli embassy bombing 22:40 MKs seek pardon for Omri Sharon 'to sit at father's bedside' 18:19 Facebook face-off: Settlers win right to list country as Israel, not Palestine 01:21 Mazuz weighs indicting judge for fraud and breach of trust 21:25 Arab MK to chief rabbis: Slam rabbinic calls to harm Arabs 21:13 PM: No chance Israel will cede E. Jerusalem areas like Har Homa Previous Editions Select Day 17 mar 16 mar 14 mar 13 mar 12 mar 11 mar 10 mar 09 mar 07 mar 06 mar 05 mar 04 mar

Special Offers Advertisement FAREWELL ISRAEL New Film The Coming War for Islamic Revival - View Movie Trailer READY FOR PURIM? BUT - Who Will Guard The Hamentasch? Free the Palestinians from: Corrupt Kleptocracy, Tyrannical Theocracy, Abysmal Anarchy Long-term Israel programs MASA is your gateway. More programs. More grants. NEW! Dan Boutique Jerusalem Hotel Hip Dan Hotel in Jerusalem. Attractive Introductory Rates 7589 rockets fired so far HELP US TO HELP THEM FREE JEWISH HISTORY COURSE Berel Wein's best selling lectures. 5000 Years in Five hours /CD/MP3 Marina Royale Herzelia Pituach Your Luxurious Suite While Staying in Israel Fattal Hotel Chain Perfectly located hotels on best resorts of Israel. ISRAEL BONDS Build Israel Israel bonds - a multi-purpose way to celebrate Israel's 60th Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on all online reservations Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |

Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.

© Copyright  Haaretz. All rights reserved