Photo: depositphotos
Netanyahu’s proposal to withdraw the banknotes caused panic in the country
On September 26, the Bank of Israel officially announced that the cancellation of the 200-shekel notes is not under consideration. As the portal vesty reports, the press service of the Bank of Israel confirmed that the organization does not plan to use its powers to withdraw any banknote from circulation.
The press release emphasizes: “The authority to cancel banknotes by law belongs exclusively to the head of the Central Bank. Despite the discussion of this topic in the press, the head of the Bank of Israel did not receive any valid arguments for canceling any note. Therefore, the use of 200-shekel banknotes will continue, as before.”
Thus, the Bank of Israel put an end to the rumors and panic that arose after Prime Minister Benjamin Netanyahu’s proposal to withdraw the 200-shekel notes in order to fight organized crime. The bank’s statement clearly states that such decisions can only be made by the heads of the Central Bank, and there are currently no grounds for such actions.
Before the announcement of the Bank of Israel’s official position, many Israelis rushed to exchange 200-shekel bills for dollars, fearing their possible seizure. Representatives of the banking system and independent experts noted a sharp increase in the number of requests for exchange of banknotes: from small exchange to conversion to deposit accounts or exchange for foreign currency.
“In recent days, there has been a significant influx of customers who wanted to get rid of 200 shekel banknotes,” said one of the banks. “However, due to the reduction of branches that provide cash services, many clients turned to other financial institutions.”
The demand for foreign currency at some exchange points using 200-shekel notes has more than tripled, leading to a shortage of dollars at these points.
