A stronger shekel has become a pressing problem for Americans building lives in Israel |
JTA — Yisrael HaBahiyir saved for more than a year to make his dream of moving to Israel come true.
But just weeks after leaving upstate New York, where he had been managing operations for a synagogue, he got a cruel reality check when he transferred his rent money from his American bank account to Western Union to pay his Tel Aviv landlord.
“I sent the same amount I normally transfer and went to pick it up. It was about 300 shekels short. I said something to the cashier, like, ‘I think you gave me the wrong rate,’” HaBahiyir recalled. “That’s when I realized the shekel was strengthening.”
It’s an experience that Americans in Israel — and Israelis who depend on American dollars — are increasingly facing, as the Israeli shekel has strengthened to near-record highs. While the currency’s strength has been good news to many Israelis who worried that years of war would harm the economy, it is having wide-ranging and often challenging ramifications for immigrants and Israeli nonprofits.
Many Americans who move to Israel have chosen to keep some or all of their assets in dollars, whether to hedge against shekel volatility, maintain financial ties to the United States or preserve flexibility should they ever return.
When the dollar is relatively strong compared to the shekel, as was the case for much of the past decade, that arrangement is advantageous. Assets held in dollars go further in an Israeli economy priced in shekels, giving American immigrants greater purchasing power for everyday expenses.
But now, with the shekel trading at less than three to a dollar, its most favorable rate in over three decades, anyone trying to make a life in Israel using US dollars is feeling the squeeze. (The shekel strengthened further on Tuesday, closing at 2.84 to the dollar.)
“Before, $1,500 would get me close to 6,000 shekels and cover my bills,” said Lauren Adilav, who works as a freelance editor for American authors. “I’m relying on money from the US to cover my rent. If the shekel gets any stronger, I don’t know if I can.”
The exchange rate isn’t just punishing Americans in Israel. It’s also putting extreme pressure on the many Israeli charities and organizations that depend on donations from Jews abroad. Aish Hatorah, the Orthodox outreach organization based in Jerusalem, announced last month that it had laid off several employees and twice delayed salary payments to staff amid funding shortfalls driven largely by the strengthening shekel.
Leket Israel, the food rescue organization, has also felt the pressure. Its founder, Joseph Gitler, said the shift had made clear that Israeli nonprofits can no longer rely solely on........