Dollar’s Decline Hurting Israeli Economy

According to Tal Avda, chief knowledge officer with Clal Forex—the foreign exchange branch of Clal Finance—the growing strength of the shekel versus other currencies, including the dollar’s decline against it, is hurting medium and small export businesses in Israel the most. “This current rate is very problematic for them, and we’re wondering if some of them simply will have to shut down and announce bankruptcy.” He said that though the strong shekel situation benefits importers, that this still ultimately means a lot of money is leaving the nation of Israel and less is coming in—an unhealthy prospect for the economy. In response, the Bank of Israel has cut interest rates and purchased foreign currency.

By Joshua Spurlock, Correspondent BFP Israel Mosaic Radio