Minister of Finance Yuval Steinitz expects to have a difficult meeting with Manufacturers Association president Shraga Brosh on Thursday when they discuss the problem of the weak dollar.
Brosh told "Globes" today, "The slide in the shekel-dollar exchange rate is liable to become the Lehman Brothers of the Israeli economy. The present exchange rate of around NIS 3.75/$ is no longer a joke, and it's not possible to sit silently. Investment houses expect the dollar to continue to weaken against the shekel, and we're liable to lose export competitiveness and fire more employees. Without a recovery in exports, the economy cannot emerge from the crisis."
Brosh continued, "What will happen is that people will throw up their hands and move elsewhere, as happened with Tadiran Appliances, which resulted in 300 workers in Afula going home. Manufacturers in the US, Romania, and undoubtedly China have no problem with the shekel-dollar exchange rate."
The Global Competitive Index 2009-10, published by the World Economic Forum today, underscores the problem. Israel's ranking continues to slide, falling to 27th place from 23rd place last year and from 14th place three years ago.
"Globes": What do you propose to do?
Brosh: "We have a problem of speculators who are running rings around us, and it's the responsibility of the government to simply banish them, because when they finish with us, we'll be left with industry that has left us."
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009