Shekel strengthens sharply against dollar

The article points to the recent depreciation of US dollar against the Israeli Shekel on account of improved Terms of Trade for Israel.


Topics include Depreciation, Managed Float Exchange Rate system, Balance of Payments and consequences of Depreciation on the International Trade and Economic Growth of the country. In this case, also discuss the role of Terms of Trade in Appreciation of Shekel and use Exchange Rate diagrams.


Evaluation will cover Impact of depreciation of USD on Economic Growth, Interest Rates, Inflation, Terms of Trade, Balance of Payments and its effect on domestic Producers, Consumers and Government in short term and long term for Israel Economy.