Bank of Israel bought $25b foreign currency in H1

A recent report has revealed that Israel’s apex bank bought $3.166 billion in foreign currency in June 2021, a move that saw the nation’s FX reserves cross the US$200bn, a first in the nation’s history.

As of the close of June, Israel’s FX reserves held exactly US$200.175bn, rising by almost US$1.825bn compared to May’s closing amount. The reserves account for 48.8% of Israel’s GDP.

The most recent purchase also brings the total amount bought by the central bank in the first half of the year to US$25bn. The bank is drawing close to the US$30bn target it set in an announcement made in January, as part of measures to strengthen the shekel. 

A more recent announcement, however, indicates that the bank now intends to pass its original target. The strategy has proved effective so far as the shekel has remained at NIS 3.25/$ for the first half of the year.