Israel’s forex reserves continue to rise

Israel’s foreign exchange reserves at the end of November 2022 stood at $194.414 billion, an increase of $5.572 billion from their level at the end of October, the Bank of Israel reports. The level of the reserves relative to GDP was 37.5%.

The Bank of Israel said that the increase was the result of a revaluation of the reserves by $6.754 billion, offset by government transfers from abroad totaling $1.134 billion and private sector transfers totaling $48 million.

This was the tenth consecutive month that the Bank of Israel made no foreign currency purchases, as was its practice last year, in order to moderate the then strengthening of the shekel.

In 2021, the Bank of Israel purchased $35 billion in foreign currency to help exporters, by moderating the strengthening of the shekel. For much of the year, the Bank of Israel bought an average of $5 billion in foreign currency per month. But with the shekel weakening in 2022, the Bank of Israel bought only $356 million in foreign currency in January 2022, after buying $739 million in December 2021.

The foreign exchange reserves reached a record $213 billion in December 2021.

Published by Globes, Israel business news – en.globes.co.il – on December 7, 2022.

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