Central Bank Loans

December 21, 2011 by staff 

Central Bank LoansCentral Bank Loans, The shekel is stronger against the dollar for the second straight day in inter-bank trading today and is also strengthening against the euro after the European Central Bank (ECB) launched its loan plan yesterday in the latest effort to ease the euro zone debt crisis.
The shekel dollar exchange rate is down 0.16% at NIS 3.777/$ and the shekel euro exchange rate is down 0.39% at NIS 4.925/€.

Yesterday afternoon, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.783/$, down 0.37% on yesterday’s rate, and set the shekel-euro representative exchange rate at NIS 4.945/€, down 0.15%.

Market sentiment today is expected to be strong with investors backing the ECB plan to combat the debt crisis through loans. The bank is set to launch a long term loan fund with options to repay early after 12 months. The rationale behind this is that capital will be injected into the financial system for the purchase of government bonds in particular and raising market liquidity in general.

On global foreign currency exchanges, the dollar is trading at $1.31/€ and $77.79/¥.

Meanwhile, investors are continuing to respond favorably to the fall in the bond yields of Spain and Italy and the positive macroeconomic data published overseas yesterday. The German business confidence index rose by more than expected and figures for US building starts reached their highest point since mid-2010.

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