The strength of the shekel against the dollar the past several years has resulted in a revolution in the rental contracts for homes and apartments, where the dollar used to be the basis for figuring the cost of rents. The flight from the dollar and the soaring shekel causes residential owners so much money that 78 percent of leases now are quoted in shekels.
As recently as a year and a half ago, the same percentage of contracts used the dollar as the base currency. The shekel recently has depreciated, but many economists predict another wave of weakness in the dollar in the near future. Until the dollar peaked at five shekels, the Israeli currency had constantly been devalued against the dollar since the re-establishment of the Jewish State in 1948.