Israel's Fischer: hope to phase out FX intervention

Thu Jan 28, 2010 8:02am EST
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DAVOS, Switzerland (Reuters) - Israel's central bank hopes to phase out foreign exchange intervention in the shekel market as the world economy returns to normal, its governor Stanley Fischer said on Thursday.

Speaking to Reuters Insider television, Fischer also said the central bank is not defending the level of the shekel.

"We hope this is part of (the) transition out of extraordinary measures we took during the global meltdown during which we bought dollars daily. We've intervened since then if the market moved rapidly from what we regard (as) its fundamentals," Fischer said.

"We hope this will phase out as the situation returns to normal."

(Reporting by Steve Clarke, writing by Natsuko Waki and Krista Hughes)