Israelis rush to buy US dollars, causing nationwide shortages
Updated
Updated · Ynetnews · Apr 25
Israelis rush to buy US dollars, causing nationwide shortages
11 articles · Updated · Ynetnews · Apr 25
The dollar fell below three shekels for the first time in over 30 years, prompting heavy demand and shortages at money changers and some banks across Israel.
Many are buying hundreds or thousands of dollars for travel or as an investment, with shortages worsened by a six-week halt in foreign-currency shipments due to ongoing conflict with Iran and Hezbollah.
The manufacturing sector warns that a strong shekel threatens export profitability and jobs, while resumed currency shipments are expected to gradually ease the shortage.
With dollar demand soaring, how long will physical currency shortages persist across Israel?
Why is Israel's currency at a 30-year high despite ongoing regional conflict?
Can Israel's central bank save its exporters without triggering inflation or US sanctions?
Does the shekel's rise signal a broader global shift away from the US dollar's dominance?
Will the 'overly strong' shekel drive high-tech firms and startups to relocate from Israel?
April 2026 Crisis: Shekel Surges Below 3 USD with Widespread Dollar Shortage in Israel
Overview
In April 2026, the Israeli shekel surged to its strongest level in 31 years, driven by optimism over potential ceasefires with Iran and Lebanon, reduced regional risk, strong foreign investment, and favorable interest rates. This rapid appreciation sparked widespread panic buying and hoarding of scarce US dollars, creating a severe dollar shortage worsened by wartime disruptions, including Iran's closure of the Strait of Hormuz that blocked currency shipments. The shortage and strong shekel pressured exporters, forcing layoffs and production cuts, while travelers struggled to obtain foreign currency. Despite calls for government support, the central bank refrained from intervention, leaving the economy vulnerable amid ongoing geopolitical tensions and supply chain challenges.