Last week, the German financial services giant Deutsche Bank ranked the Israeli shekel as the world’s second-strongest currency, bolstering the broader outlook of the Jewish state’s economy.
“The strength of the shekel reflects the strength of Israel’s current economic position,” Leo Leiderman — a professor of comparative economics at Tel Aviv University and the chief economic adviser for Bank Hapoalim, Israel’s largest bank — told JNS.org, adding that he expects the shekel “to continue showing relative strength.”
During the past year, the shekel has appreciated 6.1 percent against the currencies of Israel’s main trading partners, including the dollar, pound, Euro and yen, according to Deutsche Bank’s strategic foreign currency analyst Dr. Gautam Kalani. Only the Chinese yuan is stronger than the shekel, Deutsche Bank said.
The shekel’s strength results partially from Israel holding one of the largest reserves of foreign currency in the world, which helps to reduce the volatility of the Jewish state’s native currency.