Israel's foreign currency reserves hit new record

Karnit Flug
Karnit Flug

The Bank of Israel purchased $510 million in foreign currency in July.

Israel’s foreign exchange reserves at the end of July 2015 stood at a record $88.424 billion, up $245 million from their level at the end of June 2015, the Bank of Israel reports. The figure at the end of June was a new record, surpassing the previous record-high foreign currency reserves of $87.628 billion recorded in August 2014.

The latest increase was the result of foreign currency purchases by the Bank of Israel in July totaling $510 million, of which $260 million was bought as part of the purchase program intended to offset the effects of natural gas production on the exchange rate. Government transfers from abroad boosted the reserves by about $372 million and a revaluation increased them by about $264 million.

These rises were partially offset by a decline of $199 million derived from private sector transactions and a revaluation that decreased the reserves by about $438 million.

With the shekel still considered too strong on the market, Bank of Israel Governor Karnit Flug will come under pressure to increase foreign currency purchases this month, having bought only $510 million last month, well below the $2 billion purchased in June.

Published by Globes [online], Israel business news - - on August 6, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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