January 20, 2021

US Kosher Importers Dealing with Shock of Weakening Dollar v. Shekel

Tel Aviv…Setting the price for items imported from Israel became that more difficult this week as there were more fluctuations in the exchange rate of the dollar v. the Shekel. A large percentage of Passover foods are imported from Israel.  But just when the soaring Shekel seemed unstoppable came the Bank of Israel's announcement on Thursday that in the course of 2021 it would buy $30 billion, which will bring Israel's foreign currency reserves to $200 billion. According to Globes, the shekel-dollar rate was set at NIS 3.2310/$ on Friday, 3.69% higher than the previous day's rate. The shekel-dollar rate subsequently rose further, to NIS 3.2695/$. In general, the US dollar strengthened on Friday against other major currencies. In its statement, the Bank of Israel said: "The advance announcement of the scope of the purchases is intended to provide the market with certainty regarding the Bank’s commitment to dealing with the recent sharp appreciation, and thus support the economy’s continued dealing with the economic ramifications of the Covid-19 crisis. “The Bank’s actions may have come too late to guide prices for Passover 2021.