Shekel

A McMeal costs $20.90 in Tel Aviv (the most expensive globally) and $4.90 in Tokyo due to currency fluctuations. Tel Aviv's rising costs stem from a strong shekel driven by tech/defense industries and supply constraints, while Tokyo's weak yen, linked to two decades of near-zero rates, lowered prices. Domestic factors like housing and food supply shortages also contribute to Tel Aviv's high cost of living.

A stronger shekel has increased effective prices for foreign investors in the housing market, leading them to adjust their purchasing plans. Buyers are now focusing on newer developments and speculative financing options as their purchasing power diminishes.

An Israeli bank is severing ties with the West Bank, raising concerns about economic implications. The West Bank economy relies heavily on Israel, with the shekel as its primary currency.

Israeli startups raised $8.6 billion this year, a 45% increase, with investments focused on cyber and AI sectors. A strong shekel has reduced cash runway, leading startups to hire abroad as costs rise, according to a new report.

Tel Aviv shares dropped and the shekel weakened against the dollar as renewed fighting with Iran caused crude prices to rise over 4%, exacerbating declines in European and Asian markets. Financial and insurance indices led the losses on the Tel Aviv Stock Exchange.

The Bank of Israel purchased $801 million in foreign currency to address a sharp rise in the shekel, which reached a 33-year high against the dollar. The move aims to prevent potential layoffs and relocations by tech firms due to economic concerns.

Israel’s central bank intervened in foreign exchange trade to curb the shekel while maintaining interest rates for a fourth consecutive time. The central bank's pause in rate changes is linked to concerns about potential escalation in conflicts with regional militant groups Hamas and Hezbollah.

In early 2026, Israel's export revenue decreased by over NIS 6.5 billion due to the shekel's strong value against the dollar, with industry groups warning of potential economic harm.

Israeli arms sales reached a record $19.2 billion in 2025 for the fifth consecutive year, driven by high European demand despite Gaza war sanctions and nearly doubled exports to Asia. Officials expressed concerns about competition and the shekel’s appreciation affecting the industry.

Israeli tech firms Wix, Rapyd, and Amdocs are implementing layoffs due to the AI revolution's impact on the industry, with Wix cutting 20% of its global staff amid rising costs from a strong shekel and a shift to 'AI-native ways of working.'

The Bank of Israel cut borrowing costs and warned about geopolitical risks, but local manufacturers criticized Governor Yair Yaron for insufficient action. A strong shekel is harming the competitiveness and profitability of exporters.

Israeli regulators have approved a stablecoin pegged to the Israeli shekel, marking a significant regulatory step in the country's cryptocurrency market. The move aims to enhance financial innovation while ensuring compliance with local regulations.