Israeli businesses that export to the US (goods, software, services etc.) need to pay employees here in Shekels.
Let`s say that 2 years ago, when the shekel was around 4.3 to the $, the exporter charged $1000 for his product, or 4300 shekels, which enabled him to pay his employees and still make a profit.
Today, in order to get that same 4300 shekels, he needs to ask his US customers to please pay him $1300, an increase of 30%. The US customer says, "what!" - a 30% increase? Forget it, I`m going to see if I can buy a similar product from India or China for less.
Granted, exporters are selling to many markets where the shekel hasn`t appreciated as much as it has against the dollar, but still, I`ll bet a huge portion of our exports are to the US, and soon American buyers are going to look for cheaper prices elsewhere.
When that happens, sadly, a lot of good people will be unemployed in Israel. |
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