Israel’s foreign exchange reserves at the end of February 2023 stood at $196.272 billion, a decrease of $4.713 billion from their level at the end of January 2023, the Bank of Israel reports. The level of the reserves relative to GDP was 37.5%.
The Bank of Israel said that the decrease was the result of a revaluation of the reserves by $3.836 billion, and government transfers from abroad totaling $953 million, and was partly offset by private sector transfers totaling $76 million.
The Bank of Israel made no foreign currency purchases last month, contradicting speculation that it had intervened in foreign currency trading to stem the depreciation of the shekel. Market sources said that the shekel had been weakening as a direct effect of the government's planned judicial overhaul.
In recent years the Bank of Israel has been purchasing large amounts of foreign currency to weaken the shekel and help Israeli exporters. In 2021 alone, the Bank of Israel purchased $35 billion in foreign currency.
Israel's foreign exchange reserves reached a record $213 billion in December 2021.
Published by Globes, Israel business news - en.globes.co.il - on March 6, 2023.
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