The continued drop of the US dollar against the New Israeli Shekel is causing mounting concern in Jerusalem, with Bank of Israel officials carefully monitoring the situation.
On Thursday, the exchange rate dropped over 2.2% to a 9-year low, dipping to 3.40. The euro is trading at 5.29 against the shekel.
Particularly hard hit by the failing dollar is the Israel Manufacturers Association, with officials explaining it cannot maintain export prices for much longer due to the deterioration of the dollar, warning many businesses will be forced to close their doors.
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6 Responses
OPEC is doing what they can especially Iran to keep the American dollar down. With this news it will only go down further as a way to bankrupt Israel.
“OPEC is doing what they can especially Iran to keep the American dollar down.”
Oil reserves are at a 15 year high. OPEC has no real insentive to produce more, and as long as the dollar is low and relatively weak, oil prices will continue to rise.
What OPEC may have to do is price the Oil in Euros, and not Dollars. Not being a financial analyt, I have no idea whatsoever as to what the ramifications of that action would potentialy be.
Ikvesa d’Meshicha!
Ad shetichle peruta min hashuk!
being hit particularly hard – are the american tenants! Israeli baal diras seem to think they can get the benefits of both worlds – they charge rent in American dollars – but go by the hebrew months so they can get two adars, and then when the dollar goes down they say theyre losing so much they have to raise the rent to keep their income the same!! chutzpah!!
not easy for retirees who live on ss# money. as shekel is up 20 % vs usd. hard choice to make as where to cut budget .
# 4- of course you pay for the 2nd adar. why would anyone give a free months worth of rent?