Foreign Currency Liberalization
The New Israeli Shekel (NIS) is now a "hard" currency, traded freely on all international money markets. This is a comparatively recent development after decades of currency control, which was essential - as in many countries after World War II - for the survival and growth of the economy.
The severe shortage of foreign currency in the first years of the state was due mainly to its imports being so much larger than its exports. This called for the "rationing" of foreign currency - allocating it only for very basic requirements (such as food, fuel, and defense equipment). Production machinery and raw materials were added to the list only later on, followed by a meager $10 allocation per person for travel abroad.
The New Israeli Shekel (NIS) is now a "hard" currency, traded freely on all international money markets. This is a comparatively recent development after decades of currency control, which was essential - as in many countries after World War II - for the survival and growth of the economy.
The severe shortage of foreign currency in the first years of the state was due mainly to its imports being so much larger than its exports. This called for the "rationing" of foreign currency - allocating it only for very basic requirements (such as food, fuel, and defense equipment). Production machinery and raw materials were added to the list only later on, followed by a meager $10 allocation per person for travel abroad.
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