February 16, 2022

A Weaker Shekel May Not Come in Time for Passover

Tel Aviv…The shekel weakened earlier this week, but it probably will not be in time to affect prices for the Passover season since most of the products have either already arrived or are enroute. On Sunday’s afternoon interbank trading, the shekel exchange rate was up 0.80% against the dollar at NIS 3.221/$ and up 0.56% against the euro at NIS 3.679/€. The shekel is trading at its weakest (highest) exchange rates against the dollar and euro since October 2021. One distributor estimated that more than half of kosher for Passover items on grocery shelves are imported from Israel including such basic staples as Matzoh. He expected prices to be “somewhat higher” than they were last year. The depreciation of the shekel has taken place over the past month even though the Bank of Israel only purchased $356 million in foreign currency last month. In 2021, the Bank of Israel bought $35 billion in foreign currency in efforts to moderate the strengthening of the shekel.