Dollar crash: The Bank of Israel officially announced today (Sunday) that it intervened in the foreign exchange market through dollar purchases.
According to the bank's announcement, $801 million was purchased "on an ad hoc basis to maintain the continued regular activity of the markets" - which indicates proactive intervention by the Bank of Israel in the foreign exchange market during May.
This is the first time the Bank of Israel has purchased dollars since 2022.
According to the bank, at the end of May, foreign exchange reserves amounted to approximately $238.7 billion - an increase of $2.953 billion compared to the end of April.
The level of reserves relative to gross domestic product stood at 37.21% - a figure that reflects the strength of the economy's financial safety net in a period characterized by uncertainty in local and international markets.
The Bank of Israel noted that most of the increase in balances stemmed from the revaluation of foreign exchange assets held by the bank, which contributed approximately $2.685 billion during the month. In addition, foreign currency purchases totaling approximately $801 million were recorded.
Last Tuesday, Bank of Israel Governor Prof. Amir Yaron said: "As inflation expectations continue to decline, this justifies a more expansionary monetary policy and at a faster pace.".
Since this statement, the dollar has consistently weakened every day and has fallen by more than 31% to the representative rate set last Friday - 2.908 shekels. The euro has also strengthened steadily and its most recent representative rate is 3.3812 shekels.
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