Bank of Israel purchases $6.8 billion of forex in January, reserves reach new record

08.02.2021 - Evdokimov Roman
Bank of Israel purchases $6.8 billion of forex in January, reserves reach new record

The Bank of Israel reported on Sunday it purchased $6.832 billion of foreign currency in January, propping in weakening the shekel from a 24-year peak and taking forex reserves to a new record high of $179.5 billion.

After purchasing $21 billion of foreign currency last year, the central bank said in January it would purchase $30 billion of forex in 2021 to try and halt the shekel’s appreciation. On January 14, the shekel reached 3.11 per dollar, its highest since 1996. Through the Bank of Israel’s action, it has softened to 3.29 per dollar, albeit the central bank believes that part of the shekel’s strength stems from a weak dollar globally.

Aside from the softening dollar, policymakers also highlighted the strong foreign investment flows into Israel plus the surplus of current account and hopes on coronavirus vaccine rollout leading to a faster economic rebound.

The central bank furthered it also bought 4.2 billion shekels ($1.3 billion) of Israeli government bonds in January to bring its total since March to 50.4 billion shekels. Its balance of corporate bond purchases was kept at 3.5 billion shekels.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?