Forex reserves shrink as shekel weakens

The Bank of Israel refrained from foreign currency purchases for the third consecutive month in April.



Israel’s foreign exchange reserves at the end of April 2022 stood at $197.630 billion, the Bank of Israel reports, a decline of $8.533 billion from their level at the end of the previous month. The level of the reserves relative to GDP was 41%.

The Bank of Israel said that the decline was the result of a revaluation that decreased the reserves by approximately $7.35 billion, government transfers abroad totaling $209 million and private sector transfers of $974 million.

This was the third consecutive month that the Bank of Israel made no foreign currency purchases, as was its practice last year, in order to moderate the strengthening of the shekel. Since the start of 2022, the shekel has been weakening on its own account due to global trends. The steep decline in share prices on Wall…

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