Israel’s $200 bill ‘unlikely’ to hit $1,000 in US currency – Reuters

Israel’s government is unlikely to be able to replace the US dollar’s value in circulation with a similar denomination in the near future, a currency expert told Reuters.

The Israeli currency’s value will drop further with each new month, as it becomes increasingly expensive to purchase goods in the West Bank and Gaza Strip, where most of the Israeli economy is based, said economist Dan Zeev.

This has created a serious problem for Israeli officials trying to convince their people to spend the money on imports.

Zeev, a senior economist at the Israel Export Market Authority, said the currency’s depreciation could cause it to lose its purchasing power as people start looking at alternative currencies.

“We’re at the point where it’s unlikely to get to $1.00 [a new one],” Zeegv said.

Some of the money that Israel exports to the United States is used for purchases of fuel and other basic goods, and Zeevi said that is the case for many other countries as well.

It is a concern that has been voiced by the Israel Foreign Ministry, which said on Wednesday it was considering the possibility of making a similar move.

If the new Israeli bill is considered to be a “badge of honour”, it could be subject to the same restrictions that apply to a currency, the ministry said.

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