IsraTransfer's Daniel Engelsman gives insight into how foreign exchange works, what affects rates, and how to make the most out of converting your fixed income into Shekels. Especially relevant for those making Aliyah, living in Israel, or planning on moving to Israel. http://www.isratransfer.com

1. Making Foreign Exchange work for you –
Tips for living off a Fixed Income from
Overseas.

2. Outline
• Introduction to IsraTransfer Ltd
• What is Foreign Exchange?
• What factors move the exchange rates
and why are they volatile?
• The Shekel
• Living off a fixed income
• The AACI Foreign Exchange Program

3. Who are IsraTransfer?
• IsraTransfer was established in 2008
• Founded by Daniel Engelsman and Doron
Seitz
• Transactions in excess of $100 million
• Regulated by the Israel Capital Market
Authority
• Office in Hillel Street, Jerusalem

4. What is Foreign Exchange?
• Foreign Exchange is the conversion of one
countries currency into that of another.
• In a free economy, a country’s currency is
valued according to factors of supply and
demand.
• Some countries currency value is fixed by the
countries government.
• It is estimated that $3.98 trillion is transacted
daily in the FX markets.

5. What factors move the
exchange rates?
• Interest rates
• Official interventions
• Economic Data
• Psychological factors

6. Interest Rates
UK Interest rates
Sterling v Shekel exchange rate

7. Official Interventions

9. • In March 2008 the Bank of Israel started
buying foreign currency
• One of the aims was to affect the exchange
rate
• By mid 2011 Israel’s Foreign reserves was
$76.8 billion, up from $28.2 billion in March
2008

10. Economic Data
• Economic data is released on a daily basis
Most important are:
• CPI (inflation) figures
• GDP
• interest rate decisions
• unemployment data

11. Psychological Factors
• Certain exchange rates are tough to break
for psychological reasons

12. Shekel performance
v US Dollar

13. 1Month Graph

14. 10 year graph

15. Shekel Performance
v Canadian Dollar

16. Shekel Performance
v Sterling

17. Living off a Fixed
Income
Normally two types of clients
• People who transfer/convert money on a
monthly basis.
• People who wait until they need money
and then send money.

18. Monthly amounts
• Do you take in to account the exchange
rate?
• Do you need to do it monthly?
• Where do you receive your income from?

19. Waiting until you need
the money
• Do you wait until the very last minute
before you run out of funds?
• Do you have access to the funds earlier if
needed to take advantage of beneficial
rates?
• What is your source of income?

20. Larger transfers
• Laws regarding bringing money in to Israel
• Property purchases
• Savings

21. Bringing money in to
and out of Israel
• When bringing in over $50,000 there are
certain rules and regulations
• Bank needs to see proof of the purpose of
the funds
• When sending out funds, bank needs to see
proof that no tax is due on the money

22. Large transfers
• When making large one off purchases we
will save you a large amount of Shekels.
• If purchasing a property, we can help you
make all the different payments.
• Can hedge using a Forward Contract

23. Large payments
On a transfer of $100,000On a transfer of $100,000 Saving with IsraTransferSaving with IsraTransfer
Exchange RateExchange Rate $1000
Receiving feesReceiving fees $150
Commission to convertCommission to convert $150
Total SavingsTotal Savings $1300
Savings when transferring large amounts

24. For more details please feel free to:
Call: 074-701-8887
Email: info@isratransfer.com
Visit: www.isratransfer.com/aaci