Foreign exchange reserves fell in October for the first time since January, the Bank of Israel reports.
Israel’s foreign exchange reserves at the end of October 2016 stood at $97.963 billion, down $466 million from their level at the end of September, the Bank of Israel reports.
The fall was the result of a revaluation that decreased the reserves by about $923 million due to the strengthening of the dollar against the shekel. These were partly offset by foreign currency purchases by the Bank of Israel totaling $300 million, all of which were bought as part of the purchase program intended to offset the effects of natural gas production on the exchange rate. Government transfers from abroad totaling about $141 million and private sector transfers totaling about $16 million also tempered the fall.
This is the first time since the end of January 2016 that the foreign exchange reserves have fallen. The reserves stood at $90.575 billion at the end of December 2015 and fell to $90.487 billion at the end of January 2016, and had risen since until October.
70% of the foreign currency reserves held by Israel are in dollars, 25% in euros and 5% in sterling.
Published by Globes [online], Israel business news - www.globes-online.com - on November 7, 2016
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Karnit Flug