Bank of Israel intervened significantly during the trading day in the foreign exchange market

The Bank of Israel intervened significantly during the trading day in the foreign exchange market, in order to stop the deterioration in the dollar exchange rate against the shekel. During the trading day, the dollar continued to fall by 0.34% and reached a level of NIS 3.26 to the dollar. The representative exchange rate of the dollar is NIS 3,275 per dollar.
The dollar fell by 3.3% last week and has reached a low since 2008. In recent days, the Bank of Israel has allowed the dollar to fall, partly in light of the resilience presented by exports in the third quarter, which jumped by 9.7% on an annual basis.
The Bank of Israel began increasing its foreign exchange reserves as early as October, during which the Bank increased its dollar balances by $ 165 million compared to $ 160.7 billion at the end of the previous month. More significant in the market and increased balances by more than $ 4 billion.From the beginning of the year to the end of October, the amount of the bank's intervention in the dollar exchange rate reached $ 15 billion.Next data will be published next week.
The manufacturers this week called on the Bank of Israel to intervene again in the dollar exchange rate, claiming that the appreciation of the shekel is hurting them. According to the president of the Manufacturers' Association, Dr. Ron Tomer, "exports are under attack by Corona and low-dollar forceps, which together are destroying jobs and leading to more layoffs and a further decline in growth."
The appreciation of the shekel against the dollar was also caused by a global weakening of the dollar against many currencies. At the same time, fundamentally positive data for the Israeli economy support the strengthening of the shekel - high foreign investment, and an increase in exports, along with a decline in imports and outbound tourism. All of these create a surplus in Israel's current account and push the shekel upwards. At the same time, hedging actions by Israeli institutional investors selling dollars are helping to weaken the dollar against the shekel.