Analysis |

How Israel’s Shekel Became the Strongest Currency in the World

The shekel is at a 25-year high against the dollar, which is good news for Israeli consumers. But it threatens Israel with a 21st-century form of the ‘Dutch disease’

David Rosenberg
David Rosenberg
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David Rosenberg
David Rosenberg

There was a time when a strong shekel would have sent shockwaves through the Israeli economy. Exports were the lifeblood of the economy and if the Israeli currency gained too much against the dollar, Israeli products became less price-competitive overseas and corporate profits evaporated. Layoffs would follow, reverberating across the non-export parts of the economy.

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