"As part of the foreign currency deregulation, no limitations will be imposed on dramatic money withdrawals from Israel by foreigners. The economy is strong enough not to collapse from such occurrences. Nobody is prepared for the possibility of economic terrorisation based on exploitation of the deregulation process". "Globes" heard this comment today from Gideon Schurr, Bank of Israel senior management member.
In reply to a question, Schurr rejected the possibility that Bank of Israel may formulate regulations or orders preventing the dramatic withdrawal of money from Israel. He also rejected the possibility that some Arab billionaire, or a number of Arab countries and businessmen, might unleash economic terror against Israel, and deliberately send the economy into a tailspin by means of huge money transfers. According to him, such a move would oblige them to sustain gigantic losses, and it is therefore unlikely that they would do any such thing.
- Key reactions to foreign currency market events.
"I do not see an Arab billionaire or Arab nations taking such a step. Moreover, the economy is strong enough to cope and not to collapse from such things. In any event, we have a foreign currency reporting system on very large transactions effected through the banks. Bank of Israel reports within the day if there is such an instance, of a foreign concern starting to inject funds, unless it dissolves itself into a very large number of elements. And does so even before it wishes to get out".
Schurr added that "Israel’s foreign currency reserves are very large, nothing will happen if they are reduced, and in fact, we have taken this possibility into account. Therefore, there is no need to fear a large money withdrawal from Israel".
Published by Israel's Business Arena April 14, 1998