President of the Manufacturers Association Dr. Ron Tomer, And his staff met last week with the Accountant General of the Treasury Yahli Rotenberg, in order to examine ways of assisting exporters by strengthening the dollar. Maariv learned that during the meeting, the possibility was examined, according to which the Treasury would increase the volume of hedging transactions in shekels, in order to reduce exposure to the dollar and thereby strengthen the exchange rate.
Another move discussed is the indirect neutralization of the activities of institutional entities operating abroad, which sell dollars and buy shekels, which causes a further weakening of the dollar.
The meeting last week took place as stated following the collapse of the dollar and the fact that the exchange rate is already trading at levels below NIS 3.18 per dollar.
During the meeting, the President of the Manufacturers presented the problem of the decline in exports and the closure of production lines and their transfer abroad, as a direct result of the weakening of the dollar.
However, other moves, such as increasing the volume of dollar debt hedging, can be carried out immediately and are the responsibility of the Accountant General, and in this matter it seems that the manufacturers have found a sympathetic ear among the finance people. It should also be noted that the meeting with the Accountant General was held after the President of the Manufacturers internalized that the dollar problem is not just at the doorstep of the Bank of Israel, and that it is a fiscal problem that should also bother the Treasury.
In this context, the Governor of the Bank of Israel, Prof. Amir Yaron, has promised that he will not stop interfering in the currency market. He added that a $ 20 billion acquisition, made during 2020, brought the currency balances to a record $ 170 billion. In addition to intervening in the dollar, the manufacturers are seeking interim assistance to the affected exporters, by granting an exemption from payments from the employer’s share in the Social Security until the exchange rate recovers. In response to Maariv’s request, the president of the manufacturers said that he was optimistic about the meeting with the accountant general, and that he said he found a sympathetic ear in the treasury.
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