The Bank of Israel reported on the balance of foreign currency and on plans to address liquidity difficulties that hit the financial system following the corona crisis in December. The data show that foreign exchange reserves totaled approximately $ 173.3 billion at the end of 2020, an increase of $ 6.4 billion compared to November. Balances account for 43.3% of GDP.
The increase is explained by foreign currency purchases by the Bank of Israel in the amount of approximately $ 4.4 billion and revaluation of foreign exchange reserves in the amount of approximately $ 2.23 billion. On the other hand, the increase was partially offset by private sector transfers in the amount of approximately $ 78 million and government transfers abroad in the amount of approximately $ 251 million.
Level of foreign exchange reserves and the ratio of reserves to gross domestic product, 2007 to 2020
Source: Bank of Israel
With regard to the Bank of Israel’s programs for dealing with liquidity difficulties that hit the financial system following the corona crisis, it appears that the balance of long-term loans to the banking system in favor of providing credit to small businesses amounts to NIS 19.6 billion (compared with NIS 16.3 billion the previous month). Balance of purchases of government bonds – NIS 46.2 billion (compared with NIS 41.6 billion in the previous month).
The balance of the programs that were implemented as of December 31, 2020:
Source: Bank of Israel
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