Dollar Plummets to Four-Year Low Amid Shekel Strengthening
The dollar is experiencing a significant decline, currently trading at 3.09 shekels, marking its lowest value in over four years. Just earlier today, the exchange rate dipped to 3.08 shekels following its official rate set at 3.104 shekels.
Impact of Dollar Weakness
This depreciation poses challenges for exporters and manufacturers. The dollar’s value has decreased by more than 20% since April of last year when it was valued at 3.88 shekels. Ron Tomer, president of the Manufacturers Association of Israel, has urged Amir Yaron, the Governor of the Bank of Israel, to intervene to prevent further drops.
Central Bank Response
- Bank of Israel is monitoring the foreign exchange market closely.
- Yaron has not confirmed any plans for intervention during this prolonged period.
Despite a recent reduction in interest rates by half a percentage point, the shekel continues to gain strength against the dollar and euro. Current assessments suggest that the Bank of Israel will hold its interest rate steady at 3.75% during its next meeting on February 23, especially if the dollar’s decline persists.
Benefits for Travelers
The drop in both the dollar and euro presents financial advantages for Israelis traveling abroad. It is already resulting in reduced costs for:
- Flights
- Hotel accommodations
- Car rentals
- Overseas shopping
Many families could save hundreds or even thousands of shekels on their international vacations due to these alterations in exchange rates.
As the currency markets continue to evolve, the economic implications for both local businesses and travelers remain significant.
