A new record in the Bank of Israel's foreign exchange reserves: Are approaching $ 200 billion

A new record in the Bank of Israel's foreign exchange reserves rapidly approaching $ 200 billion. Foreign exchange reserves totaled $ 193.996 billion at the end of April 2021, an increase of $ 8.316 billion compared to the end of March. The balances constitute 48.1% of gross domestic product.
The increase in balances is explained by foreign currency purchases by the Bank of Israel in the amount of $ 5.266 billion and transfers by the private sector in the amount of approximately $ 186 million. In addition, foreign currency reserves were revalued in the amount of approximately $ 3.129 billion. On the other hand, the increase was partially offset by government transfers abroad in the amount of approximately $ 265 million.
The Bank of Israel has purchased close to $ 20 billion since the beginning of the year. This, from his plan to purchase about $ 30 billion this year in order to support exports and industry in Israel. Now, there is no doubt that the amount of purchases this year will be considerably higher than the plan to purchase $ 30 billion - an amount that in itself was a new record.
The Bank's announcement states that "the advance announcement of the volume of acquisitions is intended to provide the market with certainty regarding the Bank's commitment to deal with the recent sharp appreciation, thus supporting the economy's continued response to the economic consequences of the corona crisis."
 Recall that following the fall in the dollar to a low of 3.11 shekels to the dollar in mid-January last year, the bank announced a $ 30 billion acquisition plan during 2021 and about two months ago the governor said the plan might even cross that threshold. Now it seems that the bank will have no choice but to go through the continuum it has set for itself.
Since then, although the dollar has returned to trading at levels higher than NIS 3.3, lower but better for exporters than a rate of 3.11, it has since fallen again and today its representative rate is set at NIS 3.2610.
 Leader Capital Markets believes that in the middle of the year it will weaken to a level of about NIS 3.24 and by the end of the year it has already dropped to a salary of NIS 3.15. On the other hand, Meitav Dash believes that by the middle of the year it will reach NIS 3.35 or NIS 3.4 and by the end of the year it will strengthen to a level of NIS 3.5.