Abolishing the exchange-rate band: its continued existence is in complete contradiction to the liberalization of foreign currency and long-term capital flows which were-and continue to be-the fuel of the engine of Israel’s growth, the high-tech industry. The continued existence of the exchange-rate band imperils Israel’s financial stability.
Three assessments prevail in this connection:  ·  The first assessment is that “There is an area where change can be speedily expressed on the ground … The price of money…is determined solely by the Bank of Israel. The instruments it controls affect another important variable: the exchange rate” (opinion in Ha’aretz, 8.6.2001).