JERUSALEM, May 9 (NNN-PNA) – Israel’s foreign exchange reserves decreased to 197.63 billion U.S. dollars at the end of Apr, down from 206.16 billion dollars in Mar, according to data issued by the country’s central bank yesterday.
It is the fourth consecutive monthly drop in Israel’s forex reserves since an all-time high of 213 billion dollars recorded in Dec, 2021, according to the central bank.
The total reserves represent 41 percent of Israel’s GDP, the central bank noted.
Gad Lior, a senior analyst for Yedioth Ahronoth daily newspaper, said that, a major reason for the continuous decline is that, the central bank has stopped buying dollars since Jan, after massive purchases in 2021, to curb the weakening of the U.S. dollar against the Israeli shekel.
These purchases in 2021, at a total of 35 billion dollars, were part of Israel’s monetary policy in dealing with the COVID-19 crisis, according to an annual report recently released by the bank.
Another reason for the Apr decline was the revaluation of Israeli foreign currency reserves that decreased them by 7.35 billion dollars, while private sector transfers of 974 million dollars and government transfers abroad of 209 million dollars also contributed to the decline, according to the central bank.– NNN-PNA
