Why companies that use the Shekel need to hedge against the US dollar?
Many companies are thinking about a potential Israeli shekel hedge against the USD, but it’s still something that remains at the proposition level. The Shekel has continued to appreciate over the past few years, but the truth is that there were also periods where it weakened abruptly.

That’s why it’s important to have a powerful, dependable hedging strategy that helps alleviate any possible concerns and problems that can arise.

Is the shekel a stable currency?
Like any other currency, the shekel does have its fair share of fluctuations, especially when it comes to the international market. The Shekel and USD price has been in sync quite a bit over the years, but it also had times when it ended up fluctuating a lot more than anticipated; which is why an Israeli shekel hedge is somewhat expected, especially in the business world.
If you have a company using the shekel as the main currency, then it’s a good idea to think about a hedging strategy. After all, hedging can help lower the risks of losses when the shekel prices are plummeting. And it has happened before, thus bringing in millions of dollars in losses to companies that relied solely on this currency.

You can see your companies potential upside and amount you can be saving right in our dashboard

Can the Israeli shekel hedge against the USD help companies?

As the inflation rate rises, a hedging strategy seems like the most appropriate thing to do. Not only can it help convey amazing results and prevent losses, but it also gets to help businesses focus on the internal and international market at the same time. The Israeli shekel hedge against the USD might actually have a benefit when it comes to import costs, so it’s certainly a thing that can help.
A hedging strategy against the USD might also help improve exports, while also allowing businesses to revamp their strategy and acquire raw materials from other countries.

The instability of a currency like the Israeli shekel can lead to major financial losses, something that many local businesses just can’t afford. That’s why hedging is one of the best options to not only protect financial investments, but also avoid any possible losses a company can end up with in the long term.

So yes, such a hedging strategy can be great since it can help alleviate risks for many businesses.