Foreign investors were the dominant force in the FX market in 2020

ISRAEL - Report 15 Feb 2021 by Jonathan Katz

1. The main sector impacting the shekel in 2020 was “non-residents” (foreign investors), while the Israel private sector had little net impact.
2. The trade deficit expanded in January due to weak exports and strong import growth.
3. We expect inflation in January to reach -0.3% m/m and -0.6% y/y, in line with consensus.
4. The economy is gradually opening up due to lower infection/mortality rates and rapid vaccinations.

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