IN BRIEF : Israel Devalues Shekel by 5%
Israel devalued the shekel by 5% against the dollar and a basket of other currencies, the Bank of Israel said today.
The bank said the measure was taken to stem a wave of foreign currency purchases. The central bank set its representative rate for the shekel at 1.6800 against the dollar, compared to 1.5990 on Monday.
It set the rate against the currency basket at 1.8038 compared to 1.7080 on Monday.
Israel Radio said new Finance Minister Shimon Peres and Bank of Israel governor Michael Bruno decided on the move as an interim step pending adoption of a comprehensive package involving wage restraint, budget cuts and lower subsidies.
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