Strong Shekel cost Israeli exporters US$3.3billion

Manufacturers Association found that due to the Shekel gaining 15% against the dollar, the export lost greatly in 2010
 
A survey held among exporters by the Manufacturers Association of Israel found that the country lost US$3.3 billion in exports due to the appreciation of the shekel against the dollar that started in April 2009. The Shekel has gained 15% against the dollar since then.
 
The survey found that the loss in export deals totaled US$2.3 billion, and the loss on domestic deals was US$1.1 billion. Half the companies in survey said that their competitiveness in international markets was harmed in 2010, to the point of losing customers. Dozens of manufacturers warned of further erosion in export profit margins in 2011.
 
They said that net profits fell 15% last year. The Manufacturers Association found that most Israeli manufacturing sectors showed signs of recovery from the global crisis by the second of 2009, but that the trend stopped in the second half of 2010.  
 
Ruby Ginel, director of the Manufacturers Association's economics division noted that "The appreciation destroyed the Israeli exporters' ability to compete internationally, as well as the ability to compete locally against cheap foreign imports, and as a result Israeli companies lost a significant amount of customers and sales,".
 
The strong shekel had exporters wishing for the days when the exchange rate was hovering around NIS 4.2 to the dollar, as opposed to the current NIS 3.6.
 
At first, exporters called upon the Government and the Bank of Israel to intervene. But by 2010, they understood that the most they would be getting was the Bank of Israel's dollar purchases, designed to sop up extra dollars and provide upped demand for the U.S. currency - without which the shekel most likely would have gained in value even more.