SerpApi.Org
The sharp decline in the (USD:ILS) exchange rate has hammered Israeli high-tech companies and exporters over the past year. Revenues of these firms are in dollars, while their expenses are in shekels, weighing on profitability and their operations.
It also makes hiring domestically more expensive, with companies like Wix (WIX) even slashing 20% of their workforce, in part, because of exchange rates. The premium has weighed on established Israeli corporations and U.S.-domiciled tech giants with significant Israeli operations, as well as startups, whose tighter budgets leave far less cushion for labor costs.
However, things could be turning around, at least based on movement over the past month. The (USD:ILS) has strengthened from 2.80 to 3.06, marking a rapid rebound for the currency pair, and prompting Israeli tech companies to reassess their budgets and product pipeline. There is still a way to go, though, with the average (USD:ILS) exchange rate over the past five years hovering around 3.35, making forex hedging strategy programs all the more important.
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