Foreign exchange reserves reach record $120b

Bank of Israel Photo: Shutterstock ASAP Creative

Israel’s foreign exchange reserves rose nearly $2 billion last month, despite negligible foreign currency purchases, the Bank of Israel reports.

At the end of June 2019, Israel’s foreign exchange reserves stood at a record $120.108 billion, up $1.984 billion from their level at the end of the previous month, Bank of Israel reports. The reserves represent 32.5% of GDP.

Despite the significant rise of nearly $2 billion in the forex reserves in June, the Bank of Israel only bought $4 million in foreign currency purchases last month. Most of the rise was due to a revaluation that increased the reserves by $2.235 billion.

The increase was offset by private sector transfers of $16 million and government transfers abroad totaling $239 million.

Over the past 12 months the foreign exchange reserves have risen from $114.8 billion and from $115.3 billion since the beginning of the year.

Since the start of the year, the Bank of Israel has only made very small foreign currency purchases. But with the shekel strengthening against the dollar and most of the world's major currencies, the Bank of Israel will come under pressure to resume foreign currency purchases to weaken the shekel and help exporters.

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