Bank of Israel to buy $30 billion in forex in 2021 to curb shekel rise

Times of Israel | Jan 14, 2021 at 6:08 PM
  • The Monetary Committee at the Bank of Israel said on Thursday that it plans to buy $30 billion in the foreign exchange market over 2021 in a bid to stem the appreciation of the shekel.
  • After the announcement, the currency weakened to NIS 3.1900 to the dollar, after the representative rate was set at NIS 3.1160/$ before the announcement.
  • Against this background, and to moderate the negative effect of the shekel’s appreciation on Israeli economic activity during the coronavirus crisis, the Bank of Israel increased the scope of intervention in the foreign exchange market, and in 2020 bought a total of approximately $21 billion in the foreign exchange market.