Major German bank recommends not buying Israel currency

Deutsche Bank, a major bank in Germany, has recommended not buying the Israeli shekel due to the dramatic depreciation in its worth, Israeli media reported yesterday.

According to Globes magazine, the bank cited “inability of the various parties to reach agreement on legislation introducing changes into Israel’s legal system and the constitutional crisis brewing in Israel, as important factors in the shekel’s weakness.”

It also highlighted “the flow of money out of Israel from Israeli financial institutions, as well as the sharp decline in investment in Israeli technology companies.”

Globes reported Deutsche Bank saying that “the reluctance of the Bank of Israel to step in to support the shekel is a further factor.”

Deutsche Bank concluded: “While the shekel may be undervalued on a long-term view, in the immediate and medium terms significant factors are weighing on it.”

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