Last month, the Shekel rose to its highest official rate since October 2008 with the central banks fixing operation putting it at 3.6830 against the dollar. In 2010, the Shekel has gained 2.5 percent versus the U.S. dollar. Exceptions were the pound sterling, which increased .279 percent to NIS 5.8551, the Canadian dollar, and the Egyptian lira.
All in all, the Shekel is strong, but if a peace agreement is signed, it could be even stronger. According to Bank of Israel Chief, Stanley Gordon, the economy could experience growth in the likes of 7 percent if Palestinian peace agreement and conditions are formalized.
At the recent Herzliya Conference, Gordon told delegates that the difference would be seen in the amount of money Israel is investing in security. National Security Adviser Uzi Arad blames the stalled peace negotiations on the Palestinian Authority’s “policy of refusal”.
“The reasons may change but the Palestinian policy of refusal continues, refusal to negotiate. It’s very disappointing,” said Arad, warning that such reluctance “will become a problem for the Palestinians.”
Nevertheless, Arad said such a deadlock could be overcome and negotiations have a chance of resuming.
