The shekel’s sharp appreciation reached new peaks for positive reasons, but the strong currency is translating into losses across major export sectors of the local economy, according to manufacturers.

While industrial export sales grew in the first four months of 2026 in dollar terms, the shekel’s 12 percent increase against the dollar this year has eroded those gains when measured in local currency terms, according to an analysis by the Manufacturers Association of Israel (MAI), based on figures by the Central Bureau of Statistics.

Exports rose 5 percent in dollar terms in January-April year-on-year, from $17.5 billion to $18.3 billion. But when converted into shekels, the value of export sales dropped by almost 11% from NIS 63.4 billion to NIS 56.7 billion during the comparative period, according to the MAI. Due to the fast appreciation of the local currency against the dollar, export revenue in shekel terms shrank by more than NIS 6.5 billion ($2.25 billion) compared to the same period last year.

Exporters, which include most high-tech firms, traditional manufacturers, and multinational companies, earn their money chiefly outside Israel and are paid in dollars. But they pay workers’ salaries, overhead costs, taxes and other expenses in shekels, and these have all become more expensive due to the strength of the local currency.

According to the MAI, the decline in exports in shekel terms affects almost all sectors. High-tech industries, which constitute about 42% of........

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