Israel Foreign Exchange Reserves Drop Sharply to $237 Billion in September
Bank of Israel foreign exchange reserves dropped by $4.64 billion to $237 billion in September 2026, driven by global market revaluation and government transactions.
The Bank of Israel released its foreign exchange reserves data for the end of September 2026, pointing to a sharp decline. Reserves totaled approximately $237 billion, marking a significant decrease of about $4.64 billion compared to the previous month. Despite the drop, Israel's economic safety cushion remains robust at approximately 34.2% of Gross Domestic Product.
Foreign exchange reserves function as the national savings account managed by the central bank in foreign currencies and international assets. This safety net enables the country to purchase foreign goods during emergencies, stabilize the shekel exchange rate during market shocks, and maintain global financial credibility. The sharp drop stems primarily from two main factors: market valuation changes accounting for about $4.41 billion, and government foreign currency transactions and payments abroad totaling approximately $0.27 billion.
Ultimately, this monthly fluctuation is primarily driven by global market turbulence rather than resource depletion. The state treasury continues to maintain a high and adequate level of reserves to support the national economy.
