The Bank of Israel is returning to foreign currency market intervention after a yearslong pause, buying dollars in an effort to influence foreign exchange rates against the shekel.
The central bank said Tuesday that it bought dollars in June for the second consecutive month, purchasing more than $1 billion after buying $801 million in May.
Bank of Israel Governor Prof. Amir Yaron
(Photo: Shutterstock, Alex Kolomoisky)
Israel’s foreign currency reserves stood at $238.699 billion at the end of June 2026, an increase of $18 million from the end of May. The reserves now amount to 37.2% of gross domestic product.
The Bank of Israel said the increase was driven mainly by government foreign exchange activity totaling about $625 million and central bank foreign currency purchases of $1.027 billion. It said the June purchases were carried out “on a targeted basis to maintain the continued orderly functioning of the markets.”
The increase was partly offset by a $1.458 billion revaluation of foreign currency reserves.
Following the currency purchases and amid an unstable geopolitical situation in the Middle East, the dollar has strengthened in recent weeks from 2.80 shekels to about 3 shekels.