HSBC Says Central Bank May Impose Shekel Floor: Israel Markets
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The Bank of Israel may emulate Switzerland and the Czech Republic in setting a floor for the shekel, as the currency trades near its strongest in 31 months, according to HSBC Holdings Plc.
“We can’t rule out a change in the foreign currency regime, where the Bank of Israel adopts a Czech or Swiss regime,” Jonathan Katz, a Jerusalem-based economist at HSBC, said by phone. “There they said publicly: ‘We are drawing a line in the sand, this is the bottom end of the currency and we will buy all quantity necessary to support it there.’”