In an annual end of the year convention held by Shrem Fudim Kelner for its private customers, Dr. Jacob Sheinin, director of consulting firm Economic Models said the shekel is highly likely to rise rather than devaluate, since "there is no real reason why the dollar should trade at its highest level since 1950. It should settle back to around NIS 4.4."

Speaking on alternative investment options Sheinin stated that "the high interest - low risk investment party is over. In the current market uncertainty, new game rules have been devised. No investment is risk-free. The dollar proved it can reach NIS 4.55, but it can also stop at NIS 4.25. Its fluctuations may be sharp over short time periods. If you're looking for a sure investment, go for shekel deposits offered by the bank for a 2.5% to 3% level.

Sheinin said that from a macroeconomic point of view, Israel has never been in better shape. Correct government decisions on the matter of permanent arrangements and a substantial investment in infrastructures, could lead to desirable change in no time. "There is no reason why the Israeli economy should look the way it does today in 2003," he concluded.

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