The Bank of Israel purchased $218 million in foreign currency in November as part of the program to offset the effects of natural gas production on the exchange rate.
Israel’s foreign exchange reserves at the end of November 2018 stood at $115.056 billion, up $1.145 billion from their level at the end of October, the Bank of Israel reports. The reserves represent 31.4% of GDP.
The increase was the result of: foreign exchange purchases by the Bank of Israel totaling $218 million, all of which were part of the purchase program intended to offset the effects of natural gas production on the exchange rate; government transfers from abroad totaling about $309 million; and arevaluation that increased the reserves by about $623 million. The increase was very slightly offset by private sector transfers of approximately $5 million.
Over the past 12 months, the foreign currency reserves increased from $112 billion to a record $117.6 billion at the end of January 2018, and have since fallen somewhat. The Bank of Israel announced last month that at the end of the year it is halting its purchase program for foreign currency to offset the effects of natural gas production on the exchange rate.
Published by Globes, Israel business news - en.globes.co.il - on December 6, 2018
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Bank of Israel photo: Ariel Yerusalimsky