Whether it means something politically or economically, I can’t say – but something fundamental has apparently changed in the  Israeli attitude to the dollar. In the old days, dollars were seen as the ultimate hedge against shekel inflation (many apartment  renters used to have to pay a year’s rent up front, in dollars!), but now, apparently, respect for the greenback is at an all time  low. How else do you explain it when discount supermarkets are using dollars as a sales gimmick?

In Israel, groceries aren’t cheap (although not necessarily overly expensive), but you really don’t want to stock up if you’re  paying full price. So, you wait for a sale, and then you buy in quantity. Each chain has its own sale “style” – buy one or two  items and get one free, coupons, cash back on a credit card, etc. Smart shoppers can sometimes reduce their food bill by 10% – 20% through savvy use of the discounting system, hopping from store to store looking for bargains.

That means there’s little brand loyalty for supermarket chains in Israel, and the stores know it; they realize that price trumps  convenience, prizes, or green stamps for most customers. So, they run a sale when they want to drum up business. And this is the story of one of those sales.

Not far from my house there’s a branch of a chain called Victory. Some chains go for an affluent crowd (they usually open in more affluent neighborhoods), but Victory generally sticks to the “periphery,” catering largely to Russian immigrants and working class Israelis, from what I can tell. No matter – everyone wants a bargain, and since we were in the area, we decided to check out some of their bargains.

The deal this time was unlike any I have ever seen in Israel: On a wide range of goods, you paid full price, but at checkout time, you got a cash refund – in U.S. dollars! Not the dollar equivalent in shekels, but real live actual dollars! With the dollar hovering around NIS 4 these days, that meant a discount of about 4 shekels on the participating products. The photo, for example, says you get a dollar back if you buy three packages of marshmallows. Each package is 6 shekels, so you end up paying 14 shekels for the three – a discount of a little less than 20% on each package, by my reckoning. Not too bad, but there were a lot of really good buys, with some prices halved, taking into account the dollar deal. Altogether, we got $22 U.S. dollars after everything was added up – about 80 shekels – off a total bill of 550 shekels (they didn’t look like phonies, either).

If you ask me, it’s a genius move! Israelis like to travel (especially to Turkey), so you figure some of them are going to use their “earnings” at the duty free on their way out of town this summer, while others who can’t afford to go anywhere get to feel like “big shots,” with a couple of greenbacks in their pocket (they can also take their dollars to one of the numerous currency exchange places and get shekels). It’s certainly a different promotion, at least for supermarkets. Victory probably bought the dollars last week, when the exchange rate was lower, so they aren’t discounting as much in shekels as they would if they were running a straight sale. And those who hold on to their dollars could technically get an even bigger discount long term, if the dollar strengthens to NIS 4.10 or 4.20 again.

But once upon a time, only affluent Israelis – and of course, “rich Americans” – walked around with dollars. A reflection of the power of the word “America,” and all that stands (stood?) behind it. And now dollars have been reduced to a supermarket gimmick, the equivalent of a throwaway coupon. The “American century” may not be over just yet, but is the dollar’s?

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