The Contractors Association in Gaza have announced that the depreciation of the dollar against the shekel cost them losses of as much as 10%, or $20 million, which is beyond their companies’ ability to bear, Ma’an reported Sunday.
“Following a survey of contractors’ opinions, the overwhelming majority supported a decisive decision to boycott the purchase of new tenders,” the association said in a statement.
The association stressed that its requests to curb the damage by compensating contractors for their losses has met with disinterest by local authorities as well as financiers.
The association confirmed that the boycott will take effect starting July 15 and will not stop until there’s a response to the contractors’ demands. The contractors have also threatened to escalate their boycott.
The Association appealed to all institutions to commit to compensate the contractors in a fair manner that would minimize their losses. They also ask that the price the Hamas government is charging for materials be set according to a sliding scale that corresponds with changes in currency values.
The shekel, which back in early 2016 reached a low of 3.96 shekel to the dollar, has been gaining on the US currency from President Trump’s inauguration in January. It now stands on 3.54 shekel to the dollar.