Bank of Israel to purchase $30 billion in 2021

The Bank of Israel announces it will purchase $30 billion in 2021.

“After a series of discussions held over recent days, and in order to increase the certainty regarding the Bank of Israel’s intervention in the foreign exchange market in the coming year, the Monetary Committee decided to change its foreign exchange market policy. The Committee announces that in 2021 the Bank of Israel will purchase $30 billion in the foreign exchange market.”

It adds: “This amount is markedly larger than the Bank’s intervention in the past and its assessments regarding the expected current account surplus this year, so that it will also moderate the forces for appreciation deriving from financial factors. The purchases will continue so long as they do not lead to a depreciation at an extent that is not consistent with the achievement of the Bank’s price stability and financial stability objectives.”