Financial institution of Israel buys overseas foreign money to weaken shekel

The Financial institution of Israel has reported that it bought $801 million in overseas foreign money in Could. This adopted the sharp strengthening of the shekel, which was making it troublesome for exporters and expertise corporations.

Market sources had thought that the Financial institution of Israel had solely made marginal purchases of foreign currency in Could and that it continued to purchase overseas trade extra vigorously this month – in parallel with the change in path within the trade price. After the shekel-dollar price touched a low of NIS 2.799/$ on the finish of Could, it has jumped practically 5% and now stands at NIS 2.94/$. That is in all probability additionally as a result of sharp declines on Wall Avenue on the finish of the week, which led institutional traders to rebalance publicity in portfolios, shut hedging positions and purchase {dollars}.

The Financial institution of Israel can intervene within the overseas trade market in two methods – by financial coverage by reducing the rate of interest and by buying overseas trade reserves.

The Financial institution of Israel reported that Israel’s overseas trade reserves on the finish of Could 2026 stood at a file $238.681 billion, up $2.953 billion from their stage on the finish of April.. The extent of the reserves relative to GDP was 37.2%.

The rise was primarily the results of: a revaluation that elevated the reserves by roughly $2.685 billion plus overseas trade purchases by amounting to $801million “to take care of the orderly functioning of the markets.” This improve was partly offset by the federal government’s overseas trade actions totaling about $721 million.

Revealed by Globes, Israel enterprise information – en.globes.co.il – on June 7, 2026.

© Copyright of Globes Writer Itonut (1983) Ltd., 2026. .