Bank of Israel Governor Stanley Fischer spoke Sunday at an Israel Export & International Cooperation Institute conference reviewing the country's export and foreign trade ties in view of the global recession and the recovery from it.
"These are uncertain times and that is evident in the air around us, especially in the atmosphere felt in the United States… Despite speculation of a possible 'double-dip' (double recession), recovery projections remain solid. This is a time of fluctuations, but economists believe that the chances for a double dip are no more than 25%, and should it happen, it may affect only the United States and possibly northern and central Europe."
Not the only financial force around. Fischer (Photo: Israel Sun)
Turning his attention to the Bank's involvement in foreign currency trade, Fischer said that Bank of Israel data supports the fact they its dollar purchases have contributed somewhat to the devaluation of shekel rates.
Foreign currency exchange has a significant impact on the economy's growth, as such growth is possible only when there are large volumes of exports, he said.
Exporters, he added, "Must realize that there are bigger forces out there, then the Bank of Israel and the foreign currency market. We cannot impact foreign currency rates forever… there is no real way to predict market fluctuations."
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