Against the backdrop of the weakening dollar: The finance minister and the president of the manufacturers’ association agreed on a framework for government support for the industry
Last updated: May 14, 2026 | 3:50 p.m
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Finance Minister Bezalel Smotrich And the top of his office met with the president of the industrial association Avraham (Novo) Novogrotsky on the “urgent working meeting to strengthen Israeli industry and address exchange rate challenges.” At the meeting it was decided to prepare a draft of state support for Israeli industry, which will be published next week.
The dollar exchange rate fell sharply in recent months, reaching NIS 2.90, a 33-year low. As a result, many industrial companies that rely on exports have found themselves in crisis. The high-tech service industry is also in crisis, but the situation is particularly serious in the low-tech and mid-tech industries, which rely on lower profit margins.
“Not indifferent to the challenge”
The head of the budget department of the Ministry of Finance also took part in the meeting Mehran ProzenferHead of the tax authority Shay Aharonovich and the chief economist Shmuel AbramsonThe Finance Minister committed to increasing industrial productivity through investments in infrastructure and advanced technologies, while improving the competitiveness of Israeli industry in the global market. “We are committed to strengthening the resilience of the industry as an important growth driver,” emphasized Smotrich.
The president of the manufacturers’ association emphasized that industry is an important employment anchor, especially in the periphery, as well as the industry’s contribution to economic stability, from the Corona crisis to the recent war with Iran: “Industry is Israel’s professional and social anchor. We have presented a multi-year strategic plan that will ensure the qualitative lead of Israeli production.”
Regarding the government’s responsibility for the exchange rate and the strengthening of the shekel, Smotrich said: “The Bank of Israel has the tools and authority to manage monetary policy and influence the value of the shekel, but at the same time we in the Ministry of Finance are not indifferent to the challenge.” He also emphasized that the Ministry of Finance is interested in building a strong and independent industry that is not dependent on the shekel exchange rate. He concluded that the company’s goal is to build a strong and independent industry based on a quality advantage and not just on currency fluctuations.
This announcement comes after no commitments have been heard in recent weeks to change the approach to the dollar’s decline – neither from the Bank of Israel, nor from the Accountant General, nor from the institutional bodies that also influence the dollar exchange rate by hedging their investments in foreign currencies. Supporting technological improvements will be important news for Israeli industry in the long term, but will not be an answer to the immediate crisis it finds itself in.
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