Israel's forex reserves fell sharply in October

Israel’s foreign exchange reserves at the end of October 2024 fell to $216.074 billion, a decrease of $4.303 billion from their level at the end of September, the Bank of Israel reports.

Israel’s foreign exchange reserves at the end of October 2024 fell to $216.074 billion, a decrease of $4.303 billion from their level at the end of September, which was a record high, the Bank of Israel reports. The level of the reserves relative to GDP at the end of September was 42%.

The decrease was the result of a revaluation that decreased the reserves by about $4.922 billion. This decrease was partly offset by the government’s foreign exchange activities totaling about $668 million.

Despite announcing in October 2023 at the start of the war, a plan to sell up to $30 billion in foreign currency to support the shekel, the Bank of Israel again did not sell any foreign currency in October 2024, and has only sold $8.5 billion in foreign currency since the start of the war, most of it in October and November 2023.

The near record foreign exchange reserves could provide a vital cushion should the geopolitical situation escalate further and affect the strength of the Israeli currency.

Published by Globes, Israel business news - en.globes.co.il - on November 7, 2024.

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