Israel's currency balances jumps to a new high at the end of August 2021 - $ 205.912 billion

Bank of Israel continues to buy dollars in the foreign exchange market and jumps Israel's currency balances to a new high at the end of August 2021 - $ 205.912 billion. This is a huge increase of $ 4.217 billion (about NIS 14 billion) in just one month, compared to the end of the previous month. Foreign exchange reserves now account for 46.8 percent of the country's gross domestic product, a particularly high rate.
The Bank of Israel explained the additional large increase in foreign currency balances by a number of factors: purchases of foreign currency by the Bank of Israel in the amount of approximately $ 1.641 billion; Allocation of the International Monetary Fund in the amount of $ 2.613 billion, and revaluation of foreign exchange reserves in the amount of approximately $ 392 million.
The Bank of Israel explained that the allocation of the IMF to Israel is as part of an allocation to all member states of the organization in the total amount of about $ 650 billion.
On the other hand, the increase in foreign exchange reserves was partially offset by transfers to the private sector in the amount of approximately $ 203 million and transfers by the government abroad in the amount of approximately $ 226 million.
The Bank of Israel intends to purchase at least $ 30 billion in the foreign exchange market this year for two main reasons: supporting Israeli exports while preventing the Israeli shekel from strengthening further against foreign currencies and preventing the market from flooding with dollars due to the sale of Israel's natural gas.
Despite the Bank of Israel's efforts, the representative dollar exchange rate approached a threshold of only NIS 3.20 last week. In January this year, the Bank of Israel undertook to increase dollar purchases in the foreign exchange market from $ 21 billion in 2020 to at least $ 30 billion in each year 2021. The promise caused the dollar to jump from a low of NIS 3.11 to NIS 3.34 in a short time, but Since then, the shekel has strengthened again against the dollar.