Following the Bank of Israel's unexpected announcement that it would buy $30 billion in foreign currency in 2021, it already bought 22.8% of the amount last month.
The Bank of Israel reported today that Israel’s foreign exchange reserves at the end of January 2021 stood at a record $179.507 billion, up $6.210 billion from their level at the end of December 2020. At the end of February 2020, when the Covid-19 crisis began, the foreign exchange reserves were $131.176 billion. The reserves now represent 44.9% of GDP.
The increase was the result of foreign exchange purchases by the Bank of Israel totaling $6.832 billion and government transfers from abroad totaling $287 million, partly offset by a revaluation that decreased the reserves by $857 million and private sector transfers of $52 million.
Since the announcement by the Bank of Israel Monetary Committee headed by Governor Prof. Amir Yaron on January 14 that it would buy $30 billion in foreign currency in 2021, the shekel has weakened by more than 5% against the dollar from NIS 3.116/$ to NIS 3.286/$ and by more than 4% against the euro from NIS 3.787/€ to NIS 3.937/€.
Published by Globes, Israel business news - en.globes.co.il - on February 7, 2021
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