Dollar exchange rate falls below NIS 4.20

The representative shekel-dollar exchange rate fell last week to below NIS 4.20 and was traded at NIS 4.194 in early trading on Thursday, a level not seen for five years
 
The fall in the shekel-dollar exchange rate to NIS 4.18/$ triggered strong reaction from local industrialists who said that the new exchange rate will cost Israeli manufacturers $2.4 billion in sales in 2006 and 2007.
 
The Manufacturers Association of Israel said last week that the calculated $2.4 billion loss in sales in 2006 and 2007 was based on a loss of $500 million to exporters on transactions in 2006, a 5% loss in profitability, and lost domestic sales caused by competition from cheap dollar imports.
 
The sharp fall in the dollar exchange rate made the Manufacturers Association issue a statement calling on Governor of the Bank of Israel Prof. Stanley Fischer to again cut the interest rate by 0.25% for January, mainly because of its importance to export growth.