Wiz’s $32 billion sale creates a currency challenge for Israel
The government prepares to collect billions in taxes in dollars to prevent shocks in the foreign exchange market.
The sale of Israeli cybersecurity company Wiz to Google for $32 billion, completed on Wednesday, is not only the largest deal in Israel’s history; it is also a significant event for the foreign exchange market.
According to estimates, the company’s four founders, Assaf Rappaport, Roy Reznik, Yinon Costica and Ami Luttwak, who together hold more than 30% of Wiz’s shares, are expected to pay about $2.5 billion in taxes. The founders’ proceeds are expected to arrive in the coming weeks. In order to prevent a shock to the exchange rate, the Bank of Israel, the Tax Authority and the Accountant General have formulated a plan under which the taxes will be paid in dollars rather than converted into shekels.
The exchange rate has experienced significant volatility in recent months. During the first days of Operation Roaring Lion the dollar fell from around 3.12-3.14 shekels to 3.06-3.07 shekels, and has since stabilized at roughly 3.1 shekels. Since April 2025, the shekel has strengthened by about 18%, not only against the dollar but also against the currencies of Israel’s main trading partners. The rapid appreciation has made the shekel one of the strongest currencies in the developed world.
Collecting taxes in U.S. dollars is a highly unusual step for the Tax Authority. The move means that the government will receive tax revenues directly in dollars, without creating immediate demand for shekels in the foreign exchange market. If the funds were converted immediately into shekels in order to pay the taxes, it would lead to a significant inflow of dollars into the local market, a scenario that could strengthen the shekel even further.
Additional appreciation of the local currency could place further pressure on Israeli exporters, one of the economy’s key growth engines. While the Bank of Israel could intervene by purchasing dollars in the foreign exchange market, such intervention could also attract foreign speculators seeking to profit from volatility in the Israeli currency.
Meanwhile, the Ministry of Finance recently lowered its economic growth forecast from 5.2% to 4.7% amid the ongoing war. At the same time, 2026 has been identified as a potential turning point, when the economy is expected to shift from wartime conditions toward recovery.
When the shekel strengthens excessively, the profitability of companies operating in international markets erodes. The decision by the Tax Authority, initiated by the Bank of Israel, to collect the tax in dollars is therefore intended to reduce pressure on the exchange rate without direct intervention in the currency market.
The funds will be transferred from the Tax Authority to the Accountant General, who is expected to keep most of the proceeds in dollars for the government’s needs, such as servicing debt denominated in U.S. currency.
Nevertheless, most of the proceeds from the deal, around 70-75%, will ultimately end up with the founders, who reside in Israel and are likely to convert much of their money into shekels in order to invest or purchase assets. Assaf Rappaport, for example, recently purchased land in Rishpon for NIS 40 million. However, such conversions are expected to occur gradually and in a decentralized manner, reducing the risk of a sudden shock to the foreign exchange market.
At a time of war and global uncertainty, maintaining favorable conditions for exports and employment is not only an economic objective but also a strategic interest for Israel.
