Due to low $ exchange rate exporters have lost over $1b since beginning of 2007

The US dollar dropped below NIS 4 last Monday for the first time in seven years, closing at NIS 3.998. companies may cut their investment and R&D plans
 
The US dollar dropped below NIS 4 last Monday for the first time in seven years, closing at NIS 3.998. The last time the dollar sank below the NIS 4 mark was in March 2000.
 
Following the sharp decline of the US currency the Israeli Manufacturers Association (IMA) said the since the beginning of 2007 Israeli exporters have lost over US$1 billion.
 
Osem CFO Pinchas Kimelman and chairman of the IMA's financial managers forum said that the loss is basically due to the difference of the expected dollar exchange rate when export orders were taken to the actual exchange rate on the date of payment.
 
Kimelman said that the losses may harm Israel's competitive advantage in the long term. He argued that if profits are not made companies may cut their investment and R&D plans. The economic department of the IMA issued a statement indicating that if the dollar exchange rate will stay low throughout 2007, industry will lose US$3.1billion. Exporters will lose 6%, equal to US$2 billion.