BoI begins buying dollars

The Bank of Israel intervened on the foreign exchange market for the first time since July 2011.

The Bank of Israel began buying dollars today, as the shekel-dollar exchange rate fell to NIS 3.592/$, the first intervention in the market since July 2011. The Bank of Israel has reportedly purchased at least $100 million, according to one market source. The shekel-dollar exchange rate rose to NIS 3.62/$, following the intervention.

The market source said, "$100 million is not so very much for the Bank of Israel but it is a statement of intent that NIS 3.60/$ does not make it happy."

The shekel-dollar exchange rate fell to NIS 3.605/$ last week, its lowest level since September 2011. The shekel-dollar exchange rate is down 4.4% from its high point reached in July 2012, and down 4.4% from the beginning of 2013. Foreign market sources have believed for a long time that the Bank of Israel would again intervene in the market if the shekel-dollar exchange rate fell below NIS 3.60/$. The last time that the exchange rate hit this level was on August 23, 2011.

Yesterday, the Bank of Israel announced that its foreign currency reserves reached $79.97 billion at the end of March, $308 million less than a month earlier.

Published by Globes [online], Israel business news - - on April 8, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018