Bank of Israel doubles cash supply : LUSENET : TimeBomb 2000 (Y2000) : One Thread

-- Linkmeister (, December 06, 1999


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Sunday December 5 9:56 AM ET

Israeli Bank Doubles Cash Supply

JERUSALEM (AP) - Anticipating a rush on banks, the Bank of Israel has doubled the amount of cash it will allow into circulation for the transition into 2000, although it does not expect major banking system problems.

The central bank will make available $7.14 billion to the banking system to handle increased demands for cash towards year's end, according to a Bank of Israel release published Sunday. The bank's current circulation limit is half that amount, with slightly less in actual circulation.

``The Bank of Israel maintains that there is no basis to fear customer accounts will be wiped out of bank databases due to computer glitches related to the transition to 2000,'' a release said.

Customers may equip themselves with extra cash toward year's end, but the central bank cautioned the public to consider carefully liquidity needs ``in view of the dangers inherent in holding large amounts of cash.''

Bank computer testing has been successful and lending groups have also been instructed to keep complete printouts and documentation of customer accounts in the event of errors. The Bank of Israel required banks to close December 31 through January 2 to run computer system checks.

Israel ranks among countries most ready for the transition to 2000, when some computers may fail to correctly read the last two digits of the year.


-- Linkmeister (, December 06, 1999.

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