The shekel continued to weaken against the US dollar on Friday, following the Bank of Israel's announcement on Thursday that in the course of 2021 it would buy $30 billion, which will bring Israel's foreign currency reserves to $200 billion.
The representative shekel-dollar rate was set at NIS 3.2310/$ on Friday, 3.69% higher than the previous day's rate. The shekel-dollar rate subsequently rose further, to NIS 3.2695/$.
The representative shekel-euro rate was set at NIS 3.9220 on Friday, 3.56% higher than Thursday's rate.
It should be mentioned that in general the US dollar strengthened on Friday against other major currencies.
Explaining its move, the Bank of Israel said on Thursday: "The advance announcement of the scope of the purchases is intended to provide the market with certainty regarding the Bank’s commitment to dealing with the recent sharp appreciation, and thus support the economy’s continued dealing with the economic ramifications of the Covid-19 crisis."
Published by Globes, Israel business news - en.globes.co.il - on January 17, 2021
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