Israel's foreign exchange reserves hit record in June

Karnit Flug
Karnit Flug

Foreign exchange reserves rose again even though the Bank of Israel made no foreign currency purchases in June.

Israel’s foreign exchange reserves at the end of June 2016 stood at $96.635 billion, the Bank of Israel reports, up $172 million from the end of May. The rise comes even though the Bank of Israel made no foreign currency purchases in June.

The Bank of Israel said that the increase was the result of government transfers from abroad totaling $109 million and private sector transfers amounting to $218 million. These increases were partly offset by a revaluation that decreased the reserves by about $155 million.

The fact that the Bank of Israel unusually made no foreign currency purchases in June may have fuelled rumors that the bank had halted this policy. However, the Bank of Israel denied that this was the case and earlier this week reportedly bought $150 million in foreign currency in order to weaken the shekel and help exporters.

Israel's foreign exchange reserves, which stood at $88.2 billion 12 months ago and at $90.6 billion at the start of the year, have risen for the past four consecutive months.

Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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