Why Is Israel Buying Hundreds Of Millions Of Dollars?

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While Americans were barbecuing and preparing for fireworks, the Bank of Israel was buying hundreds of millions of dollars in foreign currency on Monday.

The shekel has continued to strengthen for a fifth straight season.

The Bank of Israel has now been buying dollars since 2008. It has grown its foreign currency reserves to $96.5 billion today.

The bank’s policy is aimed at protecting exports, which comprise about 31 percent of economic activity.

One dealer at an Israeli bank said the central bank started buying at a dollar-shekel rate of around 3.84.

The Central bank commented on Monday, “The Bank of Israel’s position … has not changed. The hardship facing Israel’s exports industries cannot be ignored, especially given its importance to growth and productivity in Israel.”