Israel's forex reserves fell sharply in August

Bank of Israel credit: Shutterstock Alon Adika
Bank of Israel credit: Shutterstock Alon Adika

Israel’s foreign exchange reserves at the end of August 2022 stood at $192.151 billion, a decrease of $5.318 billion from their level at the end of July, the Bank of Israel reports.

Israel’s foreign exchange reserves at the end of August 2022 stood at $192.151 billion, a decrease of $5.318 billion from their level at the end of July, the Bank of Israel reports. The level of the reserves relative to GDP was 37.2%.

The Bank of Israel said that the decrease was the result of a revaluation of the reserves by $4.695 billion, private sector transfers of $143 million and government transfers to abroad totaling $480 million.

This was the seventh consecutive month that the Bank of Israel made no foreign currency purchases, as was its practice last year, in order to moderate the then strengthening of the shekel.

Last year the Bank of Israel purchased $35 billion in foreign currency to help exporters, by moderating the strengthening of the shekel. For much of the year, the Bank of Israel bought an average of $5 billion in foreign currency per month. But with the shekel weakening in 2022, the Bank of Israel bought only $356 million in foreign currency in January 2022, after buying $739 million in December 2021.

The foreign exchange reserves reached a record $213 billion in December 2021.

Published by Globes, Israel business news - en.globes.co.il - on September 7, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Bank of Israel credit: Shutterstock Alon Adika
Bank of Israel credit: Shutterstock Alon Adika
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