Subscribe to Print Edition | Thu., April 03, 2008 Adar2 28, 5768 | | Israel Time: 00:54 (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

Bank of Israel Governor Stanley Fischer. (Daniel Bar On / Jini) Last update - 17:37 02/04/2008 Bank of Israel bought $600 million to prop up Dollar By Zvi Zrahiya, Haaretz Correspondent Tags: Foreign Exchange  The Bank of Israel said Wednesday that it purchased a total of $600million on the foreign exchange market over a 2-day period last month, in order to prop up the plunging U.S. Dollar against the New Israeli Shekel. Following the purchases on March 13-14, the central bank announced that Israel's foreign currency reserves totaled $29.415 billion - an increase of $930 million. The move surprised almost everyone in the financial markets given that Bank of Israel Governor Stanley Fischer and the bank's foreign currency department head, Barry Topf, had previously said it was unlikely that the central bank would intervene, and would only do so if there was a market failure. Advertisement The Bank of Israel also announced plans to buy $10 billion over the next two years, in daily installments of $25 million. The bank has already acquired $100 million under that scheme. Speaking at a hastily convened news conference several days after the foreign currency acquisition, Fischer said a sharp plunge in the dollar's value 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." Earlier Wednesday, Fischer addressed the Knesset Finance Committee and urged the government to refrain from deviating from the budgetary framework. "Budgetary discipline must be upheld if we want to exit this crisis in good shape - Budgetary constraints constitute an investment in the future growth of the economy." "We have a chance of getting through the current phenomenon with a relatively rapid growth rate and this possibility depends on us in terms of the market's financial stability, despite the crisis in the United States and Europe." "Crises have a course: At first it seems like it will continue indefinitely and any new data is negative. At a certain point one starts to see something the might be positive." "It is possible that within the coming weeks we will witness the continuation of the signs of change. There is a change of atmosphere, and what's important in a financial crisis is the atmosphere." Related articles: Fischer: Bank of Israel to avoid meddling in int'l currency market 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   Dude, we're aiding terror A new anti-drug campaign equates smoking pot with terrorism. Bad company A BBC poll says Israel world's most hated country after Iran.   1.   Old News 17:07  |  Mike 02/04/08   2.   Inflation 17:24  |  Lennart R. 02/04/08   3.   Clever anticyclical 18:16  |  Jacob 02/04/08   4.   The $ 19:05  |  MichaelF 02/04/08   5.   HANDOUTS 23:41  |  YUSSEF 02/04/08   6.   Israel acts like a US ally 00:15  |  Scharker Yid 03/04/08

Today Online Bradley Burston: The jihad against the Jews Responses: 98 Meshal: Hamas backs state along '67 lines, right of return Responses: 191 Dutch Jews louder than Muslims in slamming 'Fitna' film Responses: 140 BBC poll: Iran only country seen as more negative than Israel Responses: 289 Rosner's Domain Israel Factor: McCain-Barak, the dream team Israelis approve of U.S. leadership (WTR) Poll: Who'll win the Jewish vote in PA? Rosner's Guest: Easier for two Jewish parents to raise Jewish kids Clinton and Obama voters support Israel in similar numbers More Headlines 22:27 IDF Deputy Chief vows 'painful' response to any attack on Israel 23:14 MK Eldad: Olmert is running the country like a crime boss 20:33 Israel: Iran listening in on IDF communications from Syria 18:50 Olmert gives one-minute speech at Knesset hearing on government 23:49 Jewish values can fight world poverty 00:46 Israel says has removed 50 'dirt mound' roadblocks in W. Bank 22:16 Peretz offers conciliatory hand to Barak amid recent infighting 18:19 Dream team: Which President-Prime Minister combo works best? 15:16 New anti-drug campaign equates smoking pot with terrorism 17:37 Bank of Israel bought $600 million to prop up Dollar 11:59 BBC poll: Iran only country viewed more negatively than Israel 21:13 Dentist suspected of possibly infecting patient with AIDS commits suicide 21:36 New law calls for 7 centers to protect child victims of sexual violence 12:24 Dutch Jews louder than Muslims in condemning 'Fitna' film 18:21 After 5 years of debate, reserve soldiers get regulated benefits Previous Editions Select Day 02 apr 01 apr 31 mar 30 mar 28 mar 27 mar 26 mar 25 mar 24 mar 23 mar 21 mar 20 mar

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