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The government is expected to launch a foreign currency exchange rate insurance plan for small and medium-size exporters.

The concept is to alleviate certain difficulties of exporters that have been hit by the eroding dollar, explains a senior economic source in Jerusalem. He added that it's the only help the government could possibly extend to the export sector.

"Exchange rate insurance" would ensure that an exporter that agrees to sell a million dollars' worth of goods when the dollar exchange rate is NIS 4, will be able to receive NIS 4 million even if the exchange rate drops to NIS 3.7 to the dollar.

The concept will be discussed by Industry, Trade and Labor Ministry and Finance Ministry representatives in a meeting next week, the source added. The mechanism is expected to be completed within a few months.

The Finance Ministry already offers foreign trade risk insurance, which for exporters is equivalent to propping up the dollar against the shekel, the source said. The new plan aims to ensure normal export transactions that commercial banks traditionally insure, but have ceased to do so, based on concern for their foreign customers' stability.