The volume of foreign exchange trading jumped by $4.5 billion, or 15%, in August to a record $35 billion, according to figures released by the Bank of Israel today.
The total volume of trading by foreign banks and institutions grew by $4.9 billion in August to $17.8 billion, 38% higher than in July. 85% of the activity of the foreign banks and institutions was in swap trades, hedges against exchange rate fluctuations.
The volume of foreign exchange trading by companies and bank clients shrank in August by $1 billion, or 7.3%, to $12.7 billion. The activity of Israeli banks in the local market grew by $600 million to $4.4 billion, 18.5% more than in July.
The daily volume of trading by foreign banks and financial institutions grew to $808 million in August, compared with $613 million in July. Daily interbank trading rose from $179 million in July to $200 million in August. The daily volume of trading by Israeli companies and business clients fell from $651 million in July to $579 million in August.
The shekel/dollar exchange rate resumed its rise in August. The average representative rate was 1% higher than in July. The average shekel/basket of currencies rate also rose, by 0.6%. The shekel/dollar rate has risen 3.4% since the beginning of the year, while the basket of currencies rate has risen 3.1%.
The Consumer Price Index is estimated to have risen in August by 0.2%.
Published by Globes [online] - www.globes.co.il - on September 1, 2004