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Last update - 14:39 09/04/2008
BoI: Trade balance to dip in 2008, turn from surplus to deficit
By Tal Levy, TheMarker
Tags: trade balance, economy 

Israel's trade balance, which maintained a 5 billion dollar surplus in 2007, is expected to dip in 2008 into a 500 million dollar deficit, according to data released Tuesday by the Bank of Israel.

The trade balance is the amount of money that entered Israel through investments and exports minus the amount of money Israelis invested abroad and imports.

In 2007, investments in Israel and exports amounted to 5 million dollars more than imports and Israeli investments abroad. In 2008 however, the Bank of Israel expects that there will be 500 million dollars more leaving Israel than entering it.
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While the effects of the trade balance deficit can be both negative and positive, the deficit along with the fact that the Bank of Israel is purchasing dollars everyday is expected to weaken the Shekel against the dollar.
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