Finance Minister Bezalel Smotrich on Wednesday instructed his ministry to create a dedicated task force to help Israel’s technology sector cope with the effects of the shekel’s sharp rise in value, signaling a shift in the government’s approach to the issue, which it has largely remained silent on.

The move comes amid growing concern within the country’s tech industry and after several Israeli companies announced mass layoffs, partly due to the currency spike.

The shekel has traded as high as NIS 2.8 to the dollar, the highest rate since 1993. So far this year, the currency has appreciated by over 4% against the dollar and by 15% over the past year.

According to the Finance Ministry, the team will build support programs and seek ways to limit broader economic repercussions while “respecting the independence” of the Bank of Israel and its monetary policy responsibilities.

The task force will include senior officials from across the ministry, including the budget director, accountant general, chief economist, tax authority chief, capital markets regulator and advisers to the finance minister, the ministry’s statement said.

Earlier Wednesday, Finance Ministry officials met with representatives from major tech companies, who highlighted the dual challenges posed by the shekel’s rise and the transformation of global markets driven by artificial intelligence. Industry leaders warned that currency movements are making it more difficult for exporters and technology firms to remain competitive........

© The Times of Israel