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$ 750 f i l: oy n nie :Ff
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2008 RX 350
$4 6 Wm 0*
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Leather Trim, Moonroof, Heated and Power
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Steering Wheel, Dual Climate Controls
With dollar's fall, Israel finds shekel.
2008 ES 350
$399h710*
Dina Kraft
Jewish Telegraphic Agency
Leather Trim, Moonroof,
Heated and Ventilated
Power Front Seats, Lexus
Premium Sound System
with In-Dash 6 CD Changer,
27 MPG. HWY.
Tel Aviv
A
2008 IS 250
$369/M0*
Moonroof, Lexus Premium
Sound System with In-Dash 6
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Plug, Leather Trim, Six Speed
Electronic Transmission,
Remote Key Less Ignition with
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25 MPG HWY.
28300 Northwestern Hwy., Southfield, MI
(248) 372-7100
OF SOIJTH F IELD www.lexusofsouthfield.com
MEFICOE L_EJCLIS
*IS 250 24-months,12,000 miles per year lease. ES 350 and RX 350 36 months,12,000 miles per year lease.
Approved credit, $2,500 down plus lease inception, tax and title fees. Must take delivery from dealer stock.
29815 Northwestern Hwy.
Applegate Square
248.357.1800
Hours: Monday-Saturday 10-5
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JNonline.us e..800.87p.6621
C2 March 20 • 2008
J14
s the U.S. dollar continues its
spectacular nose dive — it
has lost 20 percent of its value
against the Israeli shekel in the past year
— Israelis have rediscovered the bright
greens, reds and purples of their own
currency.
No longer the subject of derision or
a victim of hyperinflation, the shekel
is now among the strongest currencies
in the world. For the first time in years,
Israeli businesses
and real estate
agencies that once
dealt only in dol-
lars now are setting
their rates to the
shekel.
Overall, the transition to a shekel
economy is good news for Israel, says
Jospeh Zeira, a professor of econom-
ics at Hebrew University in Jerusalem.
Zeira says it reflects a strong economy
that is attracting investment from
abroad.
"It means that we are less dollarized,"
he said. "It shows the public has a lot of
confidence in our currency'
plummeting dollar. Israel has a very
small domestic market and exports
comprise nearly half of the country's
gross domestic product.
In an apparent effort to soften the
effects of the falling dollar, the Bank of
Israel increased interest rates by a sig-
nificant half-percent last week.
American immigrants who retired
to Israel and are living off their dollar
savings and pensions are surprised to
find themselves in unexpected financial
circumstances. Some say they are cur-
tailing their travel plans and avoiding
restaurants.
Simmy Friedman and his wife,
Dorothy, recent
retirees from
Florida, made ali-
yah in September
2006. They say they
have not changed
their spending habits but do feel the
impact of the new situation.
"When we came the shekel was
4.34 [to the dollar], and that is what
we predicated our living expenses on:'
Friedman said. "We are extremely happy
here and would not have changed our
minds" about coming, "but it definitely
impinges on our budget:'
Describing the process of converting
his monthly U.S. Social Security check
for a dwindling amount of money, he
said, "It's a serious, serious problem
High-tech companies that raise
money and set their budgets in dollars
also are feeling the crunch.
"Most of them are dollar-based
companies; everything they do is
abroad except for their research and
development, which is done by a work-
force here paid in shekels;' said Aaron
Katsman, the managing director of
Israelnewsletter.com, a financial news-
letter that focuses on Israeli companies
that trade in the United States.
"Their expenses have risen dra-
matically because their labor costs have
risen dramatically as they convert their
funds to shekels.
"We see in their earnings reports and
every quarter that people are complain-
ing," he said.
New startup companies in particular
are hurting because suddenly their
projected costs are askew, Katsman said,
making it difficult to plan for the future
and raise money.
The rate is 3.6
shekels to the dollar.
Some Are Hurt In Israel
But the ever-plunging U.S. dollar is a
mixed bag for Israelis.
While the strong shekel has meant
more buying power for Israeli consum-
ers, American immigrants with salaries
or pensions in dollars have seen the
value of their monthly checks shrink
dramatically, Israel's export industry
stands to lose greatly and even the
Israeli military is grappling with the
reduced value of the U.S. aid dollars it
receives.
Over the past two years, the dollar has
dropped against the shekel by about 25
percent — 13 percent in the past six
months. The shekel currently stands at
3.60 against the dollar.
An e-mail joke making the rounds in
Israel shows a picture of the U.S. dollar
with this subject line: "The new 3 shekel
note'
In Israel's export industry, business-
men say the industry stands to lose
$2 billion to $3 billion because of the
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