Israel’s foreign exchange reserves at the end of December 2016 stood at a record $98.361 billion, an increase of $1.234 billion from their level at the end of the previous month, the Bank of Israel.
Foreign currency purchases by the Bank of Israel totaled $1.14 billion in December, of which $300 million were bought as part of the purchase program intended to offset the effects of natural gas production on the exchange rate. There was also a revaluation that increased the reserves by about $3 million and government transfers from abroad totaling about $93 million. These were partly offset by private sector transfers of about $2 million
Even though the dollar is at a 14-month high against the world's major currencies, it weakened 2.5% against the shekel in 2016. During 2016, the shekel appreciated by 5.6% in terms of the nominal effective exchange rate, while the euro hit a 14-year low against the shekel, and the Israeli currency appreciated 18% against sterling over the past year.
The shekel strengthened in 2016 despite huge foreign currency purchases over the year by the Bank of Israel, which saw the foreign exchange reserves rise from $90.575 billion to $98.631 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2017
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