Bank of Israel Buys Over $1 Billion in Forex for Second Consecutive Month

In June 2026, the Bank of Israel purchased $1.027 billion in foreign currency, marking the second consecutive month of intervention in the foreign exchange market. This follows a $801 million purchase in May, ending a long period without significant dollar acquisitions by the central bank. The Bank stated these purchases were made "selectively to maintain orderly market functioning."

By the end of June, Israel's foreign currency reserves stood at $238.699 billion, a modest increase of $18 million compared to the end of May. This limited growth was partly due to a negative revaluation of the reserves. The increase in reserves was influenced by the Bank's purchases and government foreign currency operations totaling about $625 million, while revaluation losses reduced reserves by approximately $1.458 billion. The reserves now represent 37.2% of Israel's GDP.

The intervention comes amid heightened volatility in currency markets driven by geopolitical tensions and a strengthening US dollar, which recently rose from around 2.80 to about 3 shekels. The Bank of Israel emphasized that these interventions are cautious and targeted efforts to preserve market stability rather than a broad policy shift.