Shekel Strengthens Despite BOI Buy

YERUSHALAYIM -

A reported Bank of Israel purchase of more than $100 million in foreign currency failed to stem the surge of the shekel on Thursday, Globes said.

By the end of the day’s trading, the reached an exchange rate of 3.4545 to the dollar.

It marked a setback after the BOI on Wednesday set the shekel-dollar representative exchange rate at NIS 3.487/$, down 0.029% on Tuesday’s rate.

The Bank of Israel published its foreign currency reserves at the end of February. The reserves have reached a record $83.976 billion, up $811 million from the end of January.

During February, the Bank of Israel bought $350 million as part of the purchase program intended to offset the effect of natural gas production on the exchange rate, and revalued the reserves upwards by $713 million. Government transfers added a further $453 million.

These increases were partly offset by government transfers of $242 million, and private sector transfers of $10 million.