Media coverage
Palestine Today · 2020-12-19
A report built on a phone interview with Shaban about the sharp fall of the US dollar in late 2020. He attributes it to confusion in US politics before the election and doubts about Trump handing over power, and to weaker demand for dollars as Covid halted tourism and air travel; he advises dollar holders to wait and shekel holders to buy dollars, which he expects to rise.
A report built on a phone interview with Shaban about the sharp fall of the US dollar in late 2020. He attributes it to confusion in US politics before the election and doubts about Trump handing over power, and to weaker demand for dollars as Covid halted tourism and air travel; he advises dollar…
## An economic expert report explains the reasons behind the dollar’s decline and predicts when it will rise
The US dollar continues its decline, today, Saturday, reaching its lowest level in 24 years against major currencies, while it fell against the “Israeli” shekel to record a new collapse, reaching 3.22 shekels.
“Palestine Today News Agency” contacted the economic expert Dr. Omar Shaban to identify the reasons that led to the sharp decline in the US dollar and its impact on other currencies and metals, in addition to expectations regarding its recovery once again.
The economic expert Dr. Omar Shaban confirmed that the sharp decline in the US dollar over the past several weeks is due to two reasons. The first is the state of confusion in US policy that began before the elections and the lack of confidence in Trump’s transfer of power, which prompted many to sell the dollar and move to other currencies and metals.
Dr. Shaban said that the second reason is the continuation of the coronavirus crisis for months, in addition to the halt in tourism, aviation, and economic activities, indicating that this led to lower demand for the dollar, which caused an increase in the supply of dollars and a decline in its value against other currencies.
He added that the decline in the value of the dollar does not work in favor of the “Israeli” shekel, noting that there are always those harmed and those who benefit from the dollar’s decline, adding: “The proposed course of action depends on the nature of the person who holds the currency.”
The economic expert predicted that the dollar’s decline for a long period will not last, noting that it will rise again within a few weeks, especially with the state of stability accompanying the arrival of the new US president, Joe Biden, to the presidency.
Dr. Shaban advised citizens who hold sums in US dollars not to dispose of them at the present time. He also advised those who hold shekels to buy dollars because it will rise.
The economic expert pointed out that gold, in light of the dollar’s decline, is considered a safe haven, and also advised distributing investment risk by diversifying financial instruments across different currencies and metals.
The Hebrew newspaper Yedioth Ahronoth mentioned, today, Saturday, that the dollar is approaching very closely its lowest level in 24 years.
According to Ahronoth, the dollar exchange rate reached 3.235 shekels yesterday, Friday, and thus came within only half an agora of its lowest price recorded in 2008, and within one agora of its lowest price recorded in 1996.
It explained that the decline in the dollar is occurring despite the Bank of “Israel” purchasing around half a billion dollars in the middle of the week, and around one and a half billion dollars purchased since the beginning of December to curb the dollar’s collapse.
The newspaper continued: “It became clear that this has had almost no effect on the foreign exchange market, and the dollar continues to decline.”
According to Yedioth, economists estimate that the announcement of new elections in “Israel” is expected to weaken the shekel slightly, after which the exchange rate of the dollar and euro will recover slightly.
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