The shekel was split against the dollar and euro in inter-bank foreign currency trading this morning. The shekel was weaker against the dollar with the exchange rate down 0.21% to NIS 3.4183/$ but stronger against the euro with the exchange rate up 0.55% to NIS 4.913/€.
On global foreign exchange markets the dollar is slightly stronger against the euro at $1.4/€ and was trading at $0.80.9/¥ against the Japanese currency.
Yesterday, the shekel-dollar representative exchange rate was set up 0.65% to NIS 3.411/$, and the shekel-euro representative exchange rate was set up 0.42% to NIS 4.94/€.
A new Bank of Israel order regarding liquidity obligations that is about to come into effect will influence the dollar. The obligations are being imposed on banking corporations in transactions relating to foreign residents foreign currency derivatives. Mandatory liquidity of 10% is being imposed on shekel-foreign currency swap and forward transactions.
The measure is a significant negative incentive for financial institutions conducting transactions in foreign currency derivatives. Bank of Israel figures show that 80% of currency conversions on Israel's capital market are carried out by foreign residents.
No comments:
Post a Comment