
Shekel Breaks Below 3 to the Dollar in First Since 1995; Exporters Warn of Economy Risk
The Israeli shekel crossed the psychological threshold of NIS 3 per dollar on Wednesday, April 15, reaching its strongest level in more than 30 years as optimism builds around an end to the war with Iran and the new Lebanon ceasefire. The currency was trading at 2.993 to the dollar at one point, its firmest showing since October 1995. The shekel has now appreciated more than 5 percent against the dollar so far in 2026 and more than 20 percent over the past year, even as military campaigns with Iran and Hezbollah have strained the economy.
Despite the bullish signal, manufacturers and exporters warned that the runaway currency represents a serious risk to the broader economy. Israel Manufacturers' Association President Avraham Novogrocki called a dollar exchange rate below NIS 3 a death blow to export profitability, noting that a cumulative 20 percent drop in the exchange rate effectively erases profit margins and pushes factories to the brink of closure. Companies earning in dollars but paying salaries and expenses in shekels are already facing collapsing dollar revenues alongside rising shekel costs.
Novogrocki cautioned that industry is grappling with reduced activity, fewer investments, and looming layoffs, and that high-tech and multinational companies are actively considering relocating operations out of Israel. He called on Bank of Israel policymakers to cut interest rates immediately in response to the 30-year peak, arguing that March inflation numbers confirm industry is absorbing cost increases without passing them on to consumers. Without swift intervention, he warned, the entire economy could pay a heavy price despite the positive geopolitical signals driving the shekel's surge.
(TOI/VFI News)
"Blessed shall you be in the city, and blessed shall you be in the country." – Deuteronomy 28:3