The Diamond Exchange District in Ramat-Gan Image credit: Ynhockey (Wikipedia)
The once vibrant diamond exchange floor in Tel Aviv remains shut and the diamond district, one of the world’s main trade and polishing centres, is still deserted, says a report in Haaretz.com.
Israel’s diamond trade declined by 90% compared to a year earlier, missing out on transactions that would have been worth $1.5 billion in March and April.
Yoram Dvash, President of the Israel Diamond Exchange and Acting President of the World Federation of Diamond Bourses said that the diamond industry woes reach far beyond Israel. It has disrupted miners and retailers alike – heavyweights De Beers and Alrosa have been forced to cut back production. "The factories in India, in Israel, in Belgium are not working, so there are not many goods in the market,” Dvash told Reuters.
Dvash also pointed out that the sector, which accounted for about 9% of exported goods in 2019, has lost around $300 mln in profit due to the crisis. It has a credit line with banks totalling about $850 mln and industry leaders have asked for government guarantees that would raise it to $1 bln, but that has yet to come.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
