The Bank of Israel’s foreign exchange reserves stood at $ 173.3 billion at the end of 2020, according to a report by the Bank of Israel today. This is an increase of $ 6.3 billion compared to the end of the previous month and an increase of $ 47 billion compared to the end of 2019. This is of course a continuation of the growing trend in balances, which means that a new record is set almost every month.
In a press briefing earlier this week, the governor revealed that during 2020, the Bank of Israel has cumulatively purchased dollars worth $ 20 billion in order to curb the strengthening of the shekel against the currency.
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The increase in currency balances over the past month is largely explained by acquisitions by the Bank of Israel ($ 4.4 billion). Another major reason for the increase is the revaluation of currency reserves, and as the dollar weakens the dollar value of the other currencies held by the Bank ($ 2.3 billion).
The Bank of Israel also reported today that the volume of government bond purchases reached NIS 46.2 billion at the end of 2021, as part of the Bank of Israel’s attempt to maintain liquidity and interest rates. The volume of long-term loans to the banking system against small business credit reached NIS 19.6 billion The Bank also reported that the volume of transactions eRepo With government and corporate bonds as collateral with the banking sector last month, it continued to stand at NIS 1.5 billion, as it has in the last six months, which indicates that the banks’ liquidity needs following the crisis have not changed in the last six months. At the same time, they serve as collateral for a loan provided by the Bank of Israel.