Israel's foreign exchange reserves grew in July by $93 million
The increase in Israel's foreign exchange reserves is attributed to profits from the Bank of Israel's investment portfolio management, which were partially offset by government withdrawals for purchases abroad.
Current data from the Bank of Israel indicates that in July, Israel's foreign exchange reserves grew by $93 million net. While the reserves increased by $191 million, the government withdrew $73 million to finance purchases abroad.
Foreign exchange reserves now stand at $238.8 billion, representing 37.2% of GDP. The growth in July is attributed to profits generated by the Bank of Israel's investment portfolio. These figures are considered satisfactory, as the reserves have remained relatively stable since the beginning of the year.
The importance of these reserves is clear. They serve as Israel's economic backbone, enabling the government to conduct foreign currency purchases and ensuring market liquidity, which allows for the buying or selling of dollars even when there is a shortage on one side of the equation.
It should be noted that the Bank of Israel does not simply hold these reserves in vaults; it manages them through a dedicated department. Profits are added to the reserves, while losses reduce them. In recent years, reserves have grown due to both successful investment portfolio performance and the movement of dollars into Israel, which has exerted downward pressure on the dollar against the shekel.
In any objective review of the Israeli economy by international bodies, the country's high foreign exchange reserves are consistently cited as a positive indicator of the stability and robustness of the Israeli economy.
