Israel's foreign exchange reserves slip from record high

Shekel-dollar ASAP Creative

September was in marked contrast to the previous four months in which the Bank of Israel bought $7.5 billion in foreign currency.

Israel’s foreign exchange reserves at the end of September 2020 stood at $160.584 billion, down $1.104 billion from their record level at the end of August, the Bank of Israel reports. The reserves represent 40.4% of GDP.

The decrease was the result of a revaluation that decreased the reserves by $1.671 billion and private sector transfers of $45 million.

This was partly offset by foreign exchange purchases by the Bank of Israel during September totaling $280 million and government transfers from abroad totaling $332 million.

September was a marked contrast to the previous four months in which the Bank of Israel bought $7.5 billion in foreign currency in desperate attempts to weaken the shekel and assist exporters. Despite this the shekel began the month at NIS 3.353/$, its strongest since July 2008. But during September the shekel weakened to NIS 3.46/$, without the Bank of Israel making significant foreign currency purchases, mainly due to the strengthening of the dollar on world markets.

Over the past 12 months, Israel's foreign exchange reserves have swelled from $119.5 billion to $160.6 billion.

Published by Globes, Israel business news - en.globes.co.il - on October 7, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Shekel-dollar ASAP Creative
Shekel-dollar ASAP Creative
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