The average exchange rate of the shekel against the currencies of most of Israel's main trading partners was higher in 2012 than in 2011, the Central Bureau of Statistics reported today. The average shekel-dollar exchange rate was NIS 3.86/$ in 2012, 7.8% weaker than in 2011.
The shekel weakened against the dollar in 2012, after strengthening strongly in the two preceding years, which forced the Bank of Israel to intervene and buy foreign currency to maintain the exchange rate.
The shekel strengthened because of dollar flight from Israel caused by the high current accounts deficit, which peaked at $1.5 billion in January 2012, but balanced later in the year.
The shekel also weakened by 7.1% in 2012 against the yen, by 6.1% against sterling, and by 1.7% against the Swiss franc. However, the average shekel-euro exchange rate was 0.5% higher in 2012 than in 2011, because of the recession in Europe and fears that the eurozone might break up.
Published by Globes [online], Israel business news - www.globes-online.com - on January 2, 2013
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