In Israel today (Sunday), immediate price rises followed the devaluation of the Israeli pound. Basic?
GV PAN Israel discount bank & people queuing (2 shots)
GV EXT. Another bank.
SV PAN Papers off presses & into van (2 shots).
GV & SCV People buying papers (2 shots).
GV, SV PAN & CU PAN Market stalls with chickens and eggs.
GV Refrigerators in showroom.
SV Cars in showroom
GV PAN New cars awaiting delivery.
Initials SGM/0316 SGM/0327
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Background: In Israel today (Sunday), immediate price rises followed the devaluation of the Israeli pound. Basic commodities like eggs, milk, butter and sugar were effected. So were luxury goods. Nevertheless the Knesset (Parliament) will be considering an emergency law at its extraordinary session tomorrow to punish unjustified price rises with heavy fines and imprisonment. The Israeli pound was devalued form 3.50 to 4.20 against the U.S. dollar overnight. Israeli is the first country to take such a step following President Nixon's drastic measures to support the dollar last week.
SYNOPSIS: A sharp jolt for the Israeli man in the street as the government devalued the Israeli pound this weekend. The currency was devalued by twenty per cent against the United States dollar. Israel is the first country to take such a step following President Nixon's drastic measures to support the dollar. The Sunday first editions headlined immediate price rises, covering both imported and home-produced goods.
The price rises were immediately felt in basic commodities like eggs - up by twelve per cent -- milk, butter and bread.
Luxury goods are also likely to be affected. Rises of up to ten per cent were forecast for cars. nevertheless, the Israeli Knesset is considering an emergency law to punish price rises that cannot be justified.