Bank of Israel re-intervened

The Bank of Israel re-intervened in the foreign exchange market: purchased $ 50 million in May

• The Bank of Israel intervened in the foreign currency market and purchased dollars in the market in order to moderate the appreciation of the shekel in order to help exporters. • In November, the Bank of Israel stopped the program designed to moderate the effect of gas production on the account Current situation

After not intervening in the foreign exchange market since January, the Bank of Israel bought $ 50 million in May, according to the Bank of Israel’s foreign exchange reserves report.

As of August 2009, the Bank of Israel intervenes in the foreign currency market and purchases dollars in the market in order to moderate the appreciation of the shekel in order to help exporters, since appreciation of the shekel harms their profitability. On the current account. Last November, the Bank of Israel announced the cessation of the plan to offset the effect of the sale of gas on the currency, but left an opening for intervention in the foreign currency market in order to moderate the strengthening of the shekel.

At the end of May, the foreign exchange reserves amounted to $ 118,124 million, a decrease of $ 619 million compared to the end of the previous month, as a result of revaluation of foreign currency reserves of $ 771 million and private sector transfers of $ 7 million. On the other hand, the decrease was offset by foreign transfers in the amount of $ 109 million, and as noted above, foreign currency purchases made by the Bank in the amount of $ 50 million. The Bank of Israel’s foreign exchange reserves currently account for 31.9% of GDP. In January of this year, the Bank of Israel purchased $ 30 million in the market, and since then has not made purchases until May. In the latest interest rate announcement, in which Governor Amir Yaron left the interest rate unchanged, it was noted that the appreciation of the shekel was a major factor that delayed the continued rise in inflation to the center of the Bank of Israel’s target range.

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