Bank of Israel will try to maintain price stability

The Bank of Israel published the main points of the work plan and the budget for its administrative activities in 2019. Within the framework of the multi-year plan formulated at the end of 2016, the Bank's long-term strategic objectives for the years 2017-2019 were redefined and a three-year operational plan was prepared, taking into account the changes and challenges Expected in the Israeli economy and in the global economy during this period.
The bank will try to maintain price stability. The challenge of managing monetary policy in a low interest environment and in a low inflation environment in Israel and around the world obligates the Bank of Israel to use policy tools adapted to this environment wisely, taking into account the risks involved in a low interest rate policy over time.
However, in recent years the global economy has gradually recovered from the effects of the crisis, and the expectation that the recovery will continue requires the Bank of Israel to prepare for the continued normalization of global monetary policy, which has already been expressed in raising interest rates in the US and other economies. To examine the financial and real implications of these changes.
It will also work to strengthen the stability of the financial system and its resilience to crises
The economic and financial strength of the economy is reflected, among other things, in its ability to deal with crises and to succeed them optimally, as the Israeli economy has faced in the face of the global financial crisis. In order to increase the preparedness of the financial system to deal with various crisis events, the Bank of Israel will work on several levels: Formulating the Committee's methods of financial stability In continuation of the Knesset's decision to establish the committee in November 2018, promoting risk-adjusted stability in the banking system, promoting regulation and regulation of payment and settlement systems Payment services, and promotion of the Bank of Israel's preparations for the management of financial crises.
The Bank will endeavor to promote effective and reliable systems and means of payment
Among other functions, the Bank of Israel is responsible for the regular supply of cash to the economy and for ensuring the existence of payment systems such as the Zahav system, the Shabak and Masav systems, and alternative means of payment for cash, such as checks, debit and credit instructions, The Bank of Israel acts to ensure the effectiveness and reliability of the various means of payment in the economy.
In the coming years, the Bank will engage in increasing the use of advanced electronic payment systems and means, and in promoting the establishment of a fast and secure infrastructure for advanced retail payments. The Bank will continue to examine the possible implications of the issuance of a digital currency by the central bank, an issue that several central banks around the world have begun to consider.
The Bank of Israel is working to complete the process of replacing the new series of notes in circulation. After completing the launch of the new series, the Bank continues to print and distribute the new notes, supplementing the absorption of the old notes, and continues to work to increase the public's familiarity with the signs of security and to prevent counterfeiting in order to increase public confidence in the currency.
In addition, the Bank of Israel is preparing to accompany the establishment of the Government Relations Corporation with the Palestinian Authority and the supervision required of it.
 An effort will also be made to increase competition and efficiency in the financial system
Competition in the financial system carries great value to the public and the economy, because it acts to reduce the prices of services, improve their quality and expand their accessibility to the general public. The technological innovations make it possible to further promote competition in the banking system, in part because they make it easier for non-banking entities to enter various areas of the credit market - providing direct credit, establishing systems that connect borrowers and lenders, and setting up systems that enable comparison of prices, And more.
The Bank of Israel's budget relates to the Bank's administrative activity, which is required to carry out its functions and achieve its objectives.
The Bank of Israel's total budget for 2019 amounts to NIS 1,195 million. The budget is 8% lower than in 2018, mainly as a result of two major projects that have a temporary impact on the budget: The budget for the renovation of the main building in Jerusalem, which has been largely completed and repopulated, is currently underway. New and beyond the issuance of bills and current money in 201