Shekel flat after volatile week

03/09/2014
Hillel Koren
Source: Globes Israel's Business Arena

FXCM Israel: It is possible we are about to see a further weakening of the shekel.

After a week of volatile foreign exchange trading following the surprise 0.25% interest rate, which mainly saw the shekel weaken, the Israeli currency is flat today in morning interbank trading. The shekel-dollar exchange rate was down 0.05% in comparison with yesterday's representative rate, at NIS 3.576/$, and the shekel-euro rate was up 0.17%, at NIS 4.6998/€.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.578/$, down 0.028% on Monday's rate, and set the shekel-euro representative exchange rate at NIS 4.692/€, down 0.215%.

FXCM Israel research department said, "The shekel-dollar exchange rate continues to consolidate around the NIS 3.57 - NIS 3.58 level. The fact that we have not seen a significant downwards correction in recent days shows the market's bullish sentiments and it is possible that we are about to see another breakthrough upwards.

FXCM added, "The level of resistance is NIS 3.58/$ and rising above that will pave the way to the key NIS 3.6/$ level. The shekel-dollar exchange rate is currently influenced by a combination of domestic and international factors. In Israel the debate about the budget is entering the decisive phase and the prime minister will have to choose between the stance of the finance minister who wants to avoid tax hikes and Karnit Flug who warns about the consequences of increasing the deficit. The global market does not forgive irresponsible fiscal policies and expanding the deficit will weigh very heavily on the shekel and cause foreign investors to flee."

Link: 
 http://www.globes.co.il/en/article-shekel-flat-after-volatile-week-1000968806.

Israeli government pushes 'BDS failure' propaganda on its own citizens

11 March 2014
Ben White
Source: Middle East Monitor

Israeli government officials involved in monitoring and fighting BDS have claimed that the movement has "suffered several blows in recent weeks", in unattributed remarks made to Hebrew news site NRG.

The examples of 'failure' cited are a mixed bag, none of them significant in the way presented by the officials. It includes, for example, the stated opposition of German Chancellor Angela Merkel and European Parliament President Martin Schulz to boycotts – hardly a surprise or major setback for campaigners.
Interestingly, the officials favourably contrasted the situation of Israel today with the eventual isolation of Apartheid South Africa. This is a disingenuous and misleading comparison, not least given how long it took for South Africa to become that isolated and the short amount of time that BDS strategies have been embraced by international activists.

Assuming readers will take their word for it, the unnamed government officials claimed that BDS efforts have "failed miserably", since the Israeli economy has continued to grow. Yet this discourse of 'failure' is in direct contrast to the approach taken by Netanyahu's senior ministers and various Israel lobby groups, who are clear about the seriousness of the threat posed by boycott and divestment initiatives.

The two seemingly contradictory messages are, however, related. As the Israeli government begins to ramp up its pushback against BDS, it will need to show that it is getting results. Thus, like the spinning of the ABP decision not to divest from Israeli banks, officials are looking to target Israeli citizens themselves for some reassuring hasbara.

The final paragraph of the item makes for interesting reading, and is worth reproducing in its entirety (thanks to Ofer Neiman for translation):

"We have been facing this phenomenon for 14 years", says one of the Israeli sources. "At any given time, there are scores of thwarting actions being taken [by us] all over the world, which do not reach public awareness". The embassies in every country are monitoring the [BDS] groups on a regular basis. In a large part of the cases, we prefer to ignore [the actions], so as not to play into the hands of the enemy. In other cases, we take actions, thwarting provocations through campus administrations or embassy representatives. We draft spokespersons or activate the Jewish community. It's constant war and long term strategic work."

This certainly fits with past experiences of legal actions, propaganda drives and lobbying conducted by community organisations, and the role of embassies in fighting BDS. Given the government's view of the situation as "constant war", perhaps it is no surprise it is pushing propaganda to its own citizens.

Link:  https://www.middleeastmonitor.com/blogs/politics/10231-israeli-government-pushes-bds-failure-propaganda-on-its-own-citizens.

Israel's Finance Minister warns of boycott impact, as further divestment announced

30 January 2014
Ben White 
Source: Middle East Monitor

Israel's Finance Minister Yair Lapid has issued a stark warning of the consequences should the U.S.-led peace process end in failure. Reports of Lapid's comments on the threat posed by a boycott of Israel came hours before news of further divestment targeting Israeli companies by the Norwegian government.

Speaking at the Institute for National Security Studies, Lapid said that an evaluation prepared by the Finance Ministry had produced an estimate of billions lost in exports should an "even partial" European boycott be imposed, and that "Israel's economy today is much more vulnerable than its national security".

The Israeli economy will retreat, every Israeli citizen will be hit directly in his pocket, the cost of living will rise, budgets for education, health welfare and security will be cut, and many international markets will be closed to us. 33% of Israeli trade is with the European Union. If there is no political settlement and we enter a scenario where our economy drops 20% in exports to the EU, the impact on the GDP would be 11 billion shekels annually, and 9,800 employees will be laid off immediately.

The Israeli minister claimed that "the world will believe [the talks] failed because of us", and thus "there will be a price" – echoing language used recently by the EU Ambassador to Israel. Lapid also raised the threat of the EU suspending the Association Agreement which provides the framework for much Israel-EU cooperation, with The Jerusalem Post citing an EU spokesperson's denial that any such step was being considered.

According to Israeli media reports, Lapid listed "an unsettling list of organizations already joining the BDS movement against Israel", and warned "that the tipping point could come unexpectedly". South Africa, Lapid observed, "did not realize until well after the fact the severity of the sanctions against it". The Wall Street Journal noted that while "Israeli officials have been bracing for this possibility [of boycott]", most have "expressed their sentiments in private".

Meanwhile, it has been announced that the Norwegian Minister of Finance has excluded Israeli companies Africa Israel Investments and Danya Cebus from the government's $800 billion oil fund, the world's biggest sovereign wealth fund holding 1% of global equity markets. The decision follows a recommendation from the Council of Ethics to remove the firms from the portfolio "due to an unacceptable risk of the companies, through their construction activity in East Jerusalem, contributing to serious violations of the rights of individuals in situations of war or conflict".

These latest developments come as Netanyahu has called for a meeting with ministers to discuss BDS, particularly in light of the recent decision by Dutch pension fund PGGM to divest from five Israeli banks. BDS campaigners have also hit the headlines with the row over Scarlett Johansson's dual role as ambassador for both SodaStream and Oxfam, the actress' relationship with the leading charity finally ending today.