The Bank of Israel today published its financial statements for 2015, showing that its balance sheet total had risen by NIS 18 billion to NIS 369 billion, a 5% increase, in comparison with 2014.
Most of the increase in assets is attributable to a NIS 18.6 billion rise in foreign currency reserves resulting from the Bank of Israel's foreign currency purchases. This was partially offset by a negative revaluing of the reserves, caused mainly by the shekel appreciation against the euro. On the liabilities side, the most significant increase was a NIS 13 billion rise in the balance of net monetary tools caused by the need to neutralize some of increased liquidity resulting from the foreign currency purchases and a NIS 10 billion rise in money in circulation.
In the bottom line, the Bank of Israel posted an NIS 8.1 billion loss for 2015, compared with a NIS 1.1 billion loss in 2014. Shekel appreciation-caused currency differences for foreign currency-denominated reserves, mainly the euro, cost the Bank of Israel NIS 10 billion, partly offset by NIS 2.9 billion in income from sales of foreign currency.
The Bank of Israel and the public's interest expenses on short-term loans and fixed-term deposits fell in 2015 by NIS 1.3 billion, mainly as a result of the drop in the shekel interest rate.
Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2016
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