Bank of Israel resumes foreign currency purchases

Bank of Israel Photo: Shutterstock ASAP Creative

The Bank of Israel reports that it purchased $50 million in foreign currency last month - its first foreign currency purchases since January.

Last month, the Bank of Israel purchased $50 million in foreign currency - its first foreign currency purchases since January, when it bought $30 million. Nevertheless, Israel’s foreign exchange reserves at the end of May 2019 stood at $118.124 billion, down $619 million from their level at the end of the previous month, the Bank of Israel reports. The reserves represent 31.9% of GDP.

The decrease was the result of a revaluation that decreased the reserves by roughly $771 million and private sector transfers of about $7 million. The decrease was offset by government transfers from abroad totaling approximately $109 million and as mentioned foreign exchange purchases by the Bank of Israel totaling $50 million.

In keeping the interest rate unchanged in May, the Bank of Israel Monetary Committee said at its meeting last month that the strengthening of the shekel was the main factor from preventing inflation to rise to the middle range of the target range of 1% to 3% per year.

Published by Globes, Israel business news - en.globes.co.il - on June 6, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Bank of Israel Photo: Shutterstock ASAP Creative
Bank of Israel Photo: Shutterstock ASAP Creative
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