Smotrich Demands Importers Cut Prices Now as Shekel Posts 24% Surge Against Dollar

Israeli Finance Minister Bezalel Smotrich sent a blunt letter Thursday to the country's top business leaders, demanding they cut consumer prices immediately and warning that he is watching closely.

The shekel has surged more than 24% against the dollar since November 2024, nearly 20% over the past year, and around 11% since January. That kind of currency strength typically means cheaper imports, and cheaper imports are supposed to mean lower prices at the store. Smotrich says that's not happening, and he wants answers.

"In a manner that is unacceptable, the Israeli public has not benefited sufficiently or fairly from this reduction," he wrote. "While businesses' import costs have dropped sharply, consumer prices have remained at their high levels or fallen only marginally. This gap translates into growing profitability at the citizen's expense, without any economic justification."

The letter went to four of the country's most powerful business figures, including the presidents of the Manufacturers Association, the Federation of Chambers of Commerce, and the LAHAV business organization. Smotrich told them to convene their importers today and produce results.

He also took a pointed swipe at the business community's habit of asking for government help when times are tough. "It cannot be that you turn to the government demanding aid packages in times of crisis, but when there is economic prosperity in the markets, you withhold it from Israeli citizens," he wrote. "The responsibility you declare must be reflected in the price on the shelf."

The dollar has lost more than 18% of its value against the shekel over the past year, with around 6% of that drop occurring since January alone. So far, Israeli shoppers have seen little of that reflected in what they pay.