The Bank of Israel reported a fall in foreign exchange reserves in May.
The shekel was the strongest it has been for three years during May but nevertheless, the Bank of Israel reported that foreign currency reserves fell last month. Israel’s foreign exchange reserves at the end of May 2014 stood at $86.478 billion, a decrease of $2 million from their level at the end of April. Foreign currency reserves at the end of April were a record $86.48 billion.
The Bank of Israel said that the decrease was the result of: Government transfers abroad of about $44 million; private sector transfers totaling about $52 million; and a revaluation that decreased the reserves by about $201 million.
These were partially offset by foreign currency purchases by the Bank of Israel totaling $295 million, all of which were purchased as part of the purchase program intended to offset the effects of natural gas production on the exchange rate.
Published by Globes [online], Israel business news - www.globes-online.com - on June 5, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014
Adrian Filut and Globes' correspondent