An Era Ends: Bank of Israel Will Stop Publishing Basket Exchange Rate

Change kicks in from May 1. Official representative rate is safe, for now

All things come to an end, and on Monday morning, the Bank of Israel killed the currency basket exchange rate.

Though Governor Stanley Fischer openly mulled a week ago whether the Bank of Israel should continue announcing official daily exchange rates for the shekel, or would be best advised to abolish the practice - the daily "representative rate" is safe.

The exchange rate band relating to the exchange rate of the currency basket was abolished a year and a half ago, the central bank points out. Moreover, the currency basket is no longer used for monitoring or analysis. So the central bank's Foreign Currency Department sees no reason to continue calculating and publishing the currency basket exchange rate, says the Bank of Israel.

The change comes into effect on May 1, 2007.

Naturally the Bank of Israel will stop calculating the basket exchange rate and updating the weights of the currencies that comprised the basket.