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December 3, 2016 / 3 Kislev, 5777

Posts Tagged ‘dollar’

PMW Reports PA’s ‘Billion Dollar Fraud’

Wednesday, April 27th, 2016

A special report by Palestinian Media Watch reveals a major fraud by the Palestinian Authority, through which it is reaping more than a billion dollars in foreign aid annually.

In 2014, the PA announced that in order to continue receiving more than a billion dollars in financial support annually, it was acceding to US and European donor countries’ demands that the PA stop paying salaries to terrorist prisoners. The PA claimed the money for prisoners’ salaries would no longer be paid by the PA but instead by the PLO.

Even though PMW warned at the time that this was nothing more than a ploy, the US and the EU countries accepted the PA’s assurances, and continue to pay the PA more than a billion dollars in financial aid every year.

The PMW special report cites numerous official PA sources and statements by officials, showing that the PA is violating the trust of the US and the EU. According to all these sources, the PA Ministry of Finance continues to make the decisions and remains the source of the money for paying salaries to terrorist prisoners.

In addition, records of the PA Ministry of Finance show money transfers the PA made to the PLO in the years 2012 – 2015. These transfers show a noteworthy money trail used to transfer money that is used for terrorist salaries from the PA to the PLO. In 2015, after the PA had assured Western donors it was no longer paying the salaries, and after it had closed the Ministry of Prisoners’ Affairs, it suddenly transferred more than double what it had transferred to the PLO in previous years. The additional amount transferred by the PA to the PLO in 2015 was almost identical to the budget the PA Ministry of Prisoners’ Affairs used to have. This extra money the PLO received from the PA in 2015 matches the amount the PLO now needed to pay the salaries of terrorist prisoners.

The payments may be made by the PLO, but the money is still PA money.

Since it continues to fund salaries to terrorists, thereby clearly violating its promise to donors, the PA should be ineligible to receive Western donor money. However, through this deception the PA is still reaping over a billion dollars in foreign aid.

Click here to view the full report in PDF
JNi.Media

Shekel-Dollar Rate Hits Three-Year High at 4.01

Friday, March 6th, 2015

The dollar was trading at 4.01 shekels shortly before noon Friday, the highest rate since 2012.

The Bank of Israel reported Friday that it bought $1 billion worth of dollars last month in its currency war to make the shekel cheap and increase exports.

The shekel-rate sneaked across the 4.00 level last week but quickly receded.

The recent buying binge of dollars by the Bank of Israel has increased Israel’s currency reserves to a whopping $85 billion.

The shekel-dollar rate could rise as far as 4.10 or 4.20, according to some analysts, but a currency bubble is developing to the point that if and when the Americans stock market starts to tumble, investors in Israel will cash in and bring home shekels. The result would be a dive in the shekel-dollar rate, with the Bank of Israel being left with a huge pile of cheaper dollars that it can’t sell without driving the rate down even further.

Tzvi Ben-Gedalyahu

Shekel-Dollar Rates Tops 3.91

Monday, December 1st, 2014

The shekel-dollar rate hit a new two-year Monday morning, rising above 3.91 shekels to the dollar.

In July, the rate was around 3.40 with projections for its going even lower.

FXCM Israel, quoted by Globes, explained Monday, “The shekel-dollar exchange rate is not stopping and reaches new peaks almost daily….

“It seems that sentiment towards the shekel is at an unprecedented low, both because of the deteriorating security situation and because of the signs that the coalition is breaking up and the election atmosphere that is taking over the political arena. All this arouses concern on the market.

“The local market seems dominated by buyers only: on the one hand, those long on the dollar are not rushing to take profits, despite the price levels, while in current conditions no-one dares buy the shekel, even when there are technical opportunities for doing so. We are thus witness to a completely one-sided market.”

It concludes that in the long term, “There is no escaping the view that this trend will continue, both because of the gap in economic growth between the US and Israel, and because of the fact that the U.S. Federal Reserve is expected to start toughening its interest rate policy, whereas the Bank of Israel, in current conditions, is expected to leave its interest rate at virtual zero for a prolonged period.

However, the Swiss USB bank wrote last week that while it sees the rate rising to 4 shekels to the dollar by mid-2015,,” Israel’s strong balance of payments should stem the depreciation in the medium term.”

Financial advisers have a habit of predicting the future based on the past and are not very good at calling a change indirection.

If the Israeli government coalition holds and early elections are not called, that could help brake the one-way trip for the currency.

Tzvi Ben-Gedalyahu

Shekel Dollar Rates Breaks Year High at 3.64

Tuesday, September 16th, 2014

The shekel-dollar rate continued its non-stop climb Monday and reached beyond 3.64 shekels to the dollar but is near a short-term resistance level of 3.66

The rate two months ago was 3.40, and analysts were predicting a further drop, but The Jewish Press reported here before the recent rise that the situation of everyone being of the same opinion was a sure sign that a reversal to the upside was in sight.

However, our previous report saw resistance around 3.62, a level that easily was broke but still is only 2 cents from the next level of 3.66

The dollar has risen against almost all foreign currencies this summer after years of being in the doldrums. The Federal Reserve Bank has given clear signals that the  near-zero prime interest rate will rise next year, which will give investors a higher return for putting dollars in the bank.

The shekel had been strong, translated into a low shekel-dollar rate, for several years until this summer. The Israeli currency was strengthened in part by the prospect of Israel becoming an exporter of natural gas, but a slowdown in the economy, hastened by the war in Gaza, regional turmoil, and the tough government choice of having to raise taxes or the debt ceiling have combined with the strong dollar to send the shekel-dollar rate north.

This is good news for anyone with money in shekels or who gets paid in dollars because the conversion rate back into shekels is becoming higher each day.

That is equally true for Israeli-based international companies, whose earnings have taken a hit in recent years because of a decline in the shekel-dollar rate.

A cheaper shekel helps increase exports and tourism because more dollars buy more shekels.

On the downside, the higher shekel-dollar rate reflects pessimism over the local economy, which until last year was one of the strongest and most stable in the world, surviving quite well even the global bust in 2008.

“The economy is slowing down sharply, and when you combine this with the fact that Israel is part of the global picture, it’s likely that the shekel will continue to weaken,” Robert Carmeli, overseas funds manager at Migdal Capital Markets to told Globes business newspaper.

He and others are predicting that the shekel-dollar rate will approach 3.80 by the end of the year.

Tzvi Ben-Gedalyahu

Shekel-Dollar Rate Soars to 3.60 for First Time in a Year

Friday, September 5th, 2014

The shekel-dollar rate continued its sudden rise Friday and was quoted at more than 3.605 shekels to the dollar for the first time a year.

The rate had dropped to as low as 3.40 this summer. The Jewish Press noted last year that the rate was likely to go down to at least 3.40 if not 3.30 because of the stable economy and Israel’s new era of an energy exporter of natural gas.

A slowdown in growth, the war in Gaza and the increasingly unstable Middle East set a floor of 3.40 for the rate. One sure sign that the bottom had been reached was almost universal agreement among analysts that the rate hit a resistance area of 3.57 earlier this week and that the rate would turn down.

The Theory of Contrary Opinion again was borne out with the non-stop rise, which so far has capped at 3.60.

Analysts at Bank Igud said that support for a weakening shekel is coming from “the slowdown growth, negative economic influences from the Protective Edge counter terror campaign, and from the need to establish social-economic priorities.”

Bank Leumi also cast doubts that the shekel will weaken.

As everyone jumps into the same camp again, the rise in the shekel-dollar rate may have finished its rise for the time being.

Tzvi Ben-Gedalyahu

Sinking Shekel-Dollar Rate Good News for Israelis Visiting the US

Wednesday, January 1st, 2014

How low can you get? The shekel-dollar rate sank to a 28-month low Tuesday, and a dollar now is worth only a tad more than 3.46 shekels, compared with 3.50 shekels  a week ago and 3.75 a year ago. A shekel now is worth 29 cents, compared with 25 cents a year ago.

That means that American in Israel wanting to visit family in the United States can buy $100 with only 346 shekels. It also is bad news for American visiting Israel or earning dollars in Israel from abroad, who receive fewer shekels for a dollar.

Tuesday’s trading sent the rate to its lowest level since the spring in 2011, and a foreign exchange specialist told Globes business newspaper, “There is no doubt that the negative pressure on the two currencies remains large and there is a risk of breaking significantly lower. The dollar is at high risk worldwide due to the positive sentiment in capital markets in recent weeks and record levels of share indices.

“If there is indeed a continued weakness of the dollar at the start of 2014, the Bank of Israel must take aggressive action to prevent a collapse. From a technical point of view the shekel-dollar exchange rate is exposed to falling to very dangerous levels such as NIS 3.42/$ and NIS 3.38/$.

The shekel dollar rate has not been this low since August 2011, when it reach 3.4 shekels to the dollar. The only other time it was lower was in 2008, when the rate fell  to 3.26.

Jewish Press News Briefs

Easing of Fears of Attack in Syria Sinks Shekel-Dollar Rate

Wednesday, September 11th, 2013

The shekel-dollar rate sank to a two-year low Wednesday, reaching to as low as under 3.56 shekels to the dollar, after President Barack Obama called off a Senate vote on giving him permission to attack Syria. One shekel now is worth slightly more than 28 cents, good news for Israelis wanting dollars but terrible for exporters and Americans in Israel whose savings or wages are in dollars.

Last week, when it seemed certain that the United States would attack Syria, the rate was more than 3.66 shekels to the dollar.

Analysts expect the Bank of Israel to buy more dollars to jack up the rate if it falls much lower, but similar measures in the past have proven to have little long-term effect. The rate may move back up because of renewed strength in the American dollar worldwide.

However, the shekel  is expected to grow stronger  in the long term because of an improving economy, reduction of the deficit and the continuing development of the new offshore energy industry that is turning Israel into an energy exporter.

Jewish Press News Briefs

Printed from: http://www.jewishpress.com/news/breaking-news/easing-of-fears-of-attack-in-syria-sinks-shekel-dollar-rate/2013/09/11/

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