The Bank of Israel today said that Israel’s foreign exchange reserves fell by $871 million during February 2010 to $60.73 billion at the end of the month.
The Bank of Israel attributed the decline to a downward revaluation of the reserves by $696 million, $346 million in government transfers abroad, and $38 million in private sector which sent money abroad.
The decline was partly offset by $209 million bought on the market.
The downward revaluation of the reserves was caused by the dollar's appreciation against other leading currencies.
In addition to US dollars, the Bank of Israel also holds foreign currency reserves in euros, pounds, and yen. The dollar component of its foreign currency reserves is estimated at 66%, 24% is held in euros, and 5% each in pounds and yen.
The dollar rose by 1.7% against the euro during February. It rose by 4.6% against the pound, and by 1.4% against the yen.
A year ago, Israel's foreign currency reserves were $40.81 billion. They rose above $50 billion in June 2009, and surpassed $60 billion in October.
Published by Globes [online], Israel business news - www.globes-online.com - on March 7, 2010
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