Israeli manufacturers warned on Monday that, without government action, the continued appreciation of the shekel will erode exporters’ profits, lead to a wave of job cuts in the industry and the tech sector, and pose a threat to economic growth prospects.

“The appreciation of the shekel is seriously damaging industry and high-tech,” said Manufacturers’ Association of Israel (MAI) President Avraham (Novo) Novogrotzky. “Without emergency measures, this could lead to a wave of layoffs, significantly harm the industry in the periphery, and cause the economy to deteriorate into a deep recession.”

Novogrotzky and Alon Ben Zur, chairman of the Israeli High-Tech Association, have asked Knesset Finance Committee Chairman Hanoch Milwidsky to convene an urgent committee meeting, while calling on the government to formulate a national emergency plan.

The plea comes after Bank of Israel Governor Amir Yaron recently indicated that the central bank is not rushing to intervene in the foreign exchange market, and emphasized........

© The Times of Israel