Israel's foreign exchange reserves continue to fall

Bank of Israel Photo: Shutterstock ASAP Creative

This was the third consecutive month that the reserves have fallen after reaching a record $120.1 billion at the end of June 2019 the Bank of Israel reports.

Israel’s foreign exchange reserves stood at $119.473 billion, at the end of September 2019, down $339 million from their level at the end of the previous month, the Bank of Israel reports. The reserves represent 31.8 percent of GDP. This was the third consecutive month that the reserves have fallen after reaching a record $120.1 billion at the end of June 2019.

The decline was the result of government transfers abroad totaling $210 million and a revaluation that lowered the reserves by $151 million. In contrast, the decline was partly offset by private sector transfers of $22 million.

Since Prof. Amir Yaron assumed office as Governor of the Bank of Israel in December 2018, there has been negligible purchases of foreign currency, even though the shekel has strengthened by 9.1% in terms of the nominal effective exchange rate since the start of 2019.

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