Bank of Israel resumed its intervention in foreign currency trading: $1 = NIS 3.26
Posted on Apr 28, 2021 by Ifi Reporter - Dan Bielski
The Bank of Israel resumed its intervention in foreign currency trading, and following the acquisition of hundreds of millions of dollars, the dollar exchange rate in continuous trading rose to rates between NIS 3.25 and NIS 3.26. This, after falling to a price of NIS 3.24 in the previous two trading days.
After intervening at a particularly high rate in January and February, in which the Bank of Israel purchased about $ 12 billion, the Central Bank contented itself in March with the purchase of less than $ 2 billion. Since the beginning of April, the central bank has rarely intervened in trading, despite the fall of the dollar by 10 agorot, which is about 3%, from the recent peak of NIS 3.34 to a nine-week low of NIS 3.24.
The decline in the dollar in recent weeks was due, among other things, to the weakening of the dollar around the world at the beginning of the term of the new US President, Joe Biden, and a surplus of dollars in the Israeli market as a result of foreign currency purchases by foreign investors. And natural gas exports.
The recent depreciation of the dollar has reduced Israeli travel abroad by at least hundreds of shekels, with the partial opening of the airport in Gan Gurion. Foreign currency purchases by Israeli travelers are still low, due to restrictions on tourism in many countries. Foreign exchange will increase, but will only affect the exchange rates of foreign currencies on the margins.
The fall of the dollar and the euro against the Israeli shekel results in lower profits for exporters and manufacturers, who in recent days have pressured the Bank of Israel to intervene in trade in order to raise the dollar closer to its exchange rate a few weeks ago, which was higher than NIS 3.30.
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