Bank of Israel Intervenes in Foreign Exchange Market Again in June to Stabilize Trading

The Bank of Israel continued its intervention in the foreign exchange market in June 2026, purchasing over $1 billion in foreign currency to ensure orderly market operations. By the end of June, the bank's foreign currency reserves rose to $238.7 billion, a slight increase of $18 million from May. The intervention was described as targeted and aimed at maintaining regular market activity.

This marks the second consecutive month of intervention, following a $801 million purchase in May, which was the first such action since early 2022. The May intervention responded to an unusual strengthening of the Israeli shekel to levels not seen in over 30 years. The June increase in reserves also reflected government foreign currency activity amounting to approximately $625 million, partially offset by a negative revaluation of reserves that reduced their value by about $1.458 billion.

Despite these fluctuations, the ratio of foreign currency reserves to GDP remained high at 37.2% at the end of June. While the Bank of Israel does not set an official exchange rate target, it is authorized under its governing law and internal procedures to intervene when market distortions or dysfunctions occur. The bank has used this tool during periods of exceptional volatility, including after the outbreak of the Israel-Hamas conflict in October 2023.