After two months of purchases: Bank of Israel did not intervene in the forex market in July
The dollar fluctuated around 3 shekels over the past month. In May and June, the Bank of Israel intervened following the strengthening of the shekel, but in July, the Israeli currency weakened.
The Bank of Israel did not intervene in the foreign exchange market in July. This follows two consecutive months of dollar purchases: in June, the central bank bought approximately 1 billion dollars, and in May, it purchased about 800 million dollars.
The Bank of Israel can intervene in the foreign exchange market in two ways: the first is monetary intervention intended to influence the exchange rate, and the second is targeted intervention to ensure the proper functioning of the market. The bank's previous interventions were carried out under the second method, specifically when the bank identified market manipulation or irregular trading processes.
On previous occasions, the bank clarified that these actions were not intended to influence the exchange rate. Apparently, there were no events in the past month that justified targeted intervention.
Today, the dollar stands at approximately 3.01 shekels, a rate around which it traded throughout July. This follows a period in June and May when the shekel strengthened significantly against the American currency, dropping below 2.8 shekels per dollar.
