In 2001, the shekel-dollar exchange rate reached a 5 to 1 ratio. Meanwhile, the last 20 years saw the American inflation spike and the Israeli economy prosper. As such, it is no wonder that the Israeli currency has strengthened significantly during this time, compared to the dollar, with the exchange rate nearing 3 shekels to 1 dollar.
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In the next decade, Israel's economy will surge thanks to its pillars of substantial growth generators.
The first is Israel's technological revolution, given that it is no longer just a start-up nation, but a high-tech nation as well. The economic significance and foreign currency flow into Israel are enormous, as is the derivative growth.
The coronavirus in particular accelerated the process that might have otherwise taken 10-15 years, to a contemporary reality that will not change soon and has diverse aspects such as technology, cyber, watertech, autotech, medical, security and industrial technologies, and more.
The second pillar is Israel's independence in the energy sphere, the fruits of which we have not experienced in full yet. Significant tax revenues from natural gas exports will increase in the coming years and bring in tons of foreign currency into the country.
The third pillar is the Abraham Accords. These economic and strategic agreements will help Israel realize its enormous economic potential.
Add to that perhaps the Israeli economy's biggest advantage – demographic multiplier. In ten years, Israel will have a population of 12 million, mostly young people. Therefore, the country has exceptional growth potential, especially in infrastructure, investment products, consumer products, and more.
All the above mentioned might bring Israel into a golden decade, and strengthen the shekel in ways we might currently deem unimaginable. With all the risks and uncertainty along the way, we may have only begun to see the shekel's surge, with the possibility of a 2 shekel to 1 dollar exchange rate being not too far away.
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