The Bank of Israel continued to buy foreign currency in June to weaken the shekel. The Bank of Israel reported that it purchased $1.027 billion in foreign currency last month, “Specifically in order to maintain the orderly functioning of the markets.”
This announcement was published today as part of the Bank of Israel’s monthly report on its foreign currency reserves. The intervention was conducted by purchasing foreign currency for shekels to mitigate the negative impact of the shekel’s appreciation on economic activity. The activity is carried out by the Markets Division, which purchases foreign exchange in accordance with the policy set by the Monetary Committee.
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As in May, the Bank of Israel explains that this was a targeted intervention to maintain the continued regular activity of the markets and not a monetary intervention.
The foreign currency reserves reached a record $238.699 billion at the end of June after the foreign currency purchase of $1.027 billion and government foreign exchange activities of $625 million, offset by a revaluation that decreased the reserves by $1.458 million.
Mizrahi Tefahot Bank chief economist Ronen Menachem tells “Globes,” “The Bank of Israel has changed gear in its policy and moved to a more expansionary policy based on its confidence that geopolitical developments support and enable this move and on the basis of low annual inflation in Israel, which is currently 1.9% and will remain at this level or lower. This policy combines cutting interest rates along with targeted foreign currency purchases in May and June. This mix allows the Bank to support the shekel during this period.”
Menachem adds, “It is likely that this mix will continue in the coming months, and this is an acceptable policy of making retrospective announcements with limited and specific activities. At the same time, it should be remembered that as the depreciation of the shekel continues while the dollar strengthens globally, and the Bank of Israel will calculate its steps in a more measured manner and will continue to adopt a cautious and moderate policy as it has done so far. This latest spot intervention comes a day after the research division’s interest rate and forecast announcement, with all three of them: the intervention, the interest rate, and the forecast – transmitting a more dovish tone to the market than in the past.”
Published by Globes, Israel business news – en.globes.co.il – on July 7, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
