{"id":474652,"date":"2026-06-03T20:04:11","date_gmt":"2026-06-03T20:04:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/474652\/"},"modified":"2026-06-03T20:04:11","modified_gmt":"2026-06-03T20:04:11","slug":"smotrich-instructs-ministry-to-build-task-force-to-help-tech-firms-with-shekel-surge","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/474652\/","title":{"rendered":"Smotrich instructs ministry to build task force to help tech firms with shekel surge"},"content":{"rendered":"

Finance Minister Bezalel Smotrich on Wednesday instructed his ministry to create a dedicated task force to help Israel\u2019s technology sector cope with the effects of the shekel\u2019s sharp rise in value, signaling a shift in the government\u2019s approach to the issue, which it has largely remained silent on.<\/p>\n

The move comes amid growing concern within the country\u2019s tech industry and after several Israeli companies announced mass layoffs,<\/a> partly due to the currency spike.<\/p>\n

The shekel has traded as high as NIS 2.8 to the dollar, the highest rate since 1993. So far this year, the currency has appreciated by over 4% against the dollar and by 15% over the past year.<\/p>\n

According to the Finance Ministry, the team will build support programs and seek ways to limit broader economic repercussions while \u201crespecting the independence\u201d of the Bank of Israel and its monetary policy responsibilities.<\/p>\n

The task force will include senior officials from across the ministry, including the budget director, accountant general, chief economist, tax authority chief, capital markets regulator and advisers to the finance minister, the ministry\u2019s statement said.<\/p>\n

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Earlier Wednesday, Finance Ministry officials met with representatives from major tech companies, who highlighted the dual challenges posed by the shekel\u2019s rise and the transformation of global markets driven by artificial intelligence. Industry leaders warned that currency movements are making it more difficult for exporters and technology firms to remain competitive internationally, the Calcalist business daily reported.<\/p>\n

At the meeting, the officials stressed that the government does not intend to intervene directly in the foreign-exchange market or attempt to manipulate the exchange rate, and said that measures to artificially stabilize the shekel could be both difficult and potentially ineffective given the size and liquidity of currency markets.<\/p>\n

\t\"\"<\/a>
\n\t\tIllustrative photo of US dollar, euro and Israeli shekel banknotes, May 9, 2026. (Nati Shohat\/Flash90)<\/p>\n

\u201cIt is impossible to maintain an artificial exchange rate forever,\u201d a ministry official told Calcalist. \u201cThe market is deep, trading volumes are enormous, and it is not even certain that intervention would be effective.\u201d<\/p>\n

\u201cWe\u2019re not China,\u201d another official said.<\/p>\n

The ministry has said it has also ruled out using government debt as a tool to weaken the shekel, citing concerns that such a move could raise concerns among international credit-rating agencies and potentially affect Israel\u2019s credit standing.<\/p>\n

Officials said they are assessing whether the currency\u2019s appreciation reflects speculative trading or genuine economic factors, the report added. Their current assessment is that the shekel is being supported primarily by real capital inflows, including foreign investment, export revenues and activity linked to major sectors such as defense.<\/p>\n

The decision to prepare an assistance package marks a notable change in tone from Smotrich, and suggests the government increasingly views the issue as one requiring attention.<\/p>\n

\t\"\"<\/a>
\n\t\tAmdocs Park in Ra\u2019anana. (Courtesy of Oron Golkarov)<\/p>\n

It comes after major Israeli tech companies Wix, Rapyd and Amdocs all announced mass layoffs in recent weeks.<\/p>\n

Wix, a maker of do-it-yourself website building software, on Thursday confirmed reports that it is cutting as many as 1,000 employees \u2014 or about 20 percent of its workforce in Israel and abroad \u2014 as the continued strength of the shekel has been driving up costs.<\/p>\n

Rapyd, a fintech unicorn, did not disclose any details regarding the scale of the planned layoffs, other than that it will rely on a more focused and professional team. Rapyd employs around 700 people globally, including its Tel Aviv-based workforce.<\/p>\n

Amdocs, a software and communications firm, is said to be preparing to reduce its global workforce by 10 percent, which is slated to affect as many as 3,000 employees, including hundreds in Israel, according to Hebrew media reports.<\/p>\n

Local tech exporters and manufacturers have long been warning about the increasingly damaging impact of the strong shekel on Israel\u2019s industry and economy, while urging the Bank of Israel and the Finance Ministry to\u00a0intervene\u00a0and slow the continued appreciation of the local currency.<\/p>\n


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