The Manufacturers Association of Israel will issue special instructions next week for manufacturers and exporters, following the results of the UK referendum on leaving the European Union (EU). Dozens of industrialists from various sectors are expected to participate. They will hear a review and forecasts for the foreign currency markets, changes in the credit market in Israel and overseas, and possibilities for hedging risks resulting from currency gaps. Discussions will be held about ways to respond to possible business scenarios following the UK's exit from the EU.
The Manufacturers Association said today that the decision to hold the seminar was taken as a result of the upheaval in the markets following the UK vote, uncertainty in world trade, and many queries from manufacturers, some of whom have extensive trade relations with the UK.
According to the Israel Export and International Cooperation Institute, Israeli exports to the UK, including diamonds, totaled $4.7 billion in 2015. The Manufacturers Association today reported that many industrialists are anxious about doing business with the UK, due to the sharp drop in the shekel-pound exchange rate; even before the vote, Israeli exports to the UK dropped alarmingly. "As if the sharp fall in industrial exports in recent months were not enough, the crisis following UK withdrawal from the EU is causing great uncertainty in the foreign currency market, thereby exposing exporters and industrialists to currency risks in exports and imports," Manufacturers Association Head of Finance & Government Incentives Sector head and chief financial officers forum head Oren Harambam said today. "With all the fears and the absence of certainty on this question, we have a range of financial tools that can be used to minimize Israeli manufacturers' exposure to risks arising from the situation in the UK."
Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2016
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