Special _ Shehab
Economist Ahmed Abu Qamar said that the shekel’s rise against the dollar reflects a state of strength that he is currently going through, explaining that the shekel’s approach to the three -minded barrier means high value, while its approach to the four shekels means decline.
Abu Qamar explained that the current exchange rate of the shekel against the dollar amounted to about 3.32, due to the weakness of the dollar index globally, as the DXY index fell to 97 after it exceeded 105 during the past months, against the backdrop of American policies, the trade war and challenges facing the United States.
He pointed out that the signs of political stability related to stopping the war on Gaza and resolving the crisis with Iran contributed to strengthening the strength of the shekel, which was also reflected in the rise of the Tel Aviv Stock Exchange index, with expectations that investors are counting on stopping the war in Gaza and Iran to reach a stage of relative stability in the region.
On the effects of this on the Palestinians, Abu Qamar stressed that the employees who receive their salaries in dollars will be affected by the decrease in the actual value of the dollar, as the value of the hundred dollars from 370 shekels has previously decreased to about 332 shekels, which means that part of the purchasing power of salaries.
Abu Qamar added that those who have loans in the shekel will face an increase in the value of the installments, especially if its income is in dollars, and the commercial sector will be affected by the continuous need to transfer between the shekel and the dollar upon import, despite the benefit of some traders from the decline in the cost of buying the dollar.
Abu Qamar said that the continuation of the shekel’s strength is greatly related to the developments of the political and security situation, explaining that if a ceasefire agreement in Gaza is permanently reached, with the war not returning, the shekel will remain strong, expecting the exchange rate in the next stage will range between 3.28 and 3.35.
He concluded by saying: “It is too early to talk about the weakening of the shekel or the return of the dollar to climb again, and the price is likely to remain in the vicinity of 3.3 in the coming weeks, unless major changes occur on the political and military scene in the region.”
