In the past I have written about the US dollars tough battle against a downward spiral. In short, the UnitedState’s dollar is fighting an increasingly gargantuan federal deficit and the prospect of continued low interest rates neither of which bode well for the strength of the dollar.
With that said, what happened last week that caused the dollar to soar against the shekel? Friday, October 23rd, saw the dollar close at 3.6972 while a week later on Friday, October 30th, the dollar closed at 3.7545 a jump of 1.5% in only seven days!
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What we in the nonprofit world need to realize is that the problems with the dollar are much larger than the USD/NIS rate of exchange. Changes in the dollar affect the world – Israel is just one of many. The Bank of Israel’s moves to buy dollars might be helping a little and the in the short term stemming the decline of the greenback, but Bank of Israel Governor Stanley Fischer is similar to David trying to fight Goliath armed with only a rubber band. Many argue that the problems of the US dollar are larger in scope and strength than anything that Fischer can throw at it.
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