The Israeli currency fell to its lowest rate in over four months against the U.S. dollar on Monday, according to exchange rates issued by Israel’s central bank.
The shekel’s exchange rate against the dollar was set at 3.342 shekels for 1 dollar, compared to a rate of 3.344 that was set in Nov. 20, 2020.
On Jan. 14, 2021, the exchange rate was set at 3.116 shekels for 1 dollar, the lowest in more than 24 years, however in the last two and a half months there has been an increase of 7.25 percent.
Gad Lior, senior analyst for Yedioth Ahronoth daily newspaper, told Xinhua that the recent jump of the dollar against the shekel is mainly explained by the difficulties of forming a new government in Israel following the results of the general elections in the country.
He added that the easing of COVID-19 restrictions on flights has led many Israelis to purchase dollars, with some buying the U.S. currency months in advance for concern that it will weaken again against the shekel.
This joins massive foreign exchange purchases by the Bank of Israel totaling over 4.9 billion dollars by the Central Bank of Israel in February.