Photo credit: Orel Cohen / Flash90
The Bank of Israel Monetary Committee announced Monday the end of its program of purchase of foreign currencies destined to offset the effects of natural gas production at the exchange rate
In 2013, in the context of a strong appreciation of the stalk, the Monetary Committee decided to start a program to buy foreign exchange for compensating for the effect of natural gas production at the exchange rate. The Commission said at the time that the program would be re-examined after the establishment of a sovereign wealth fund ("the Citizen's Fund for Israel"), which was expected to begin operations in 2018 and is now expected to start in 2019 and investing money abroad in 2020.
Every year, the Bank of Israel announced in advance what amount of foreign exchange would you buy during the year as part of this program. Since 2013, the BOI bought about 13,000 million dollars.
The BOI said it would continue to operate in the foreign exchange market "in cases of exchange rate fluctuations that are not adjusted to the fundamental economic conditions or when the conditions in the foreign exchange market are disordered."
The rate of shekel-dollar fell about 0.5 percent following the news, to NIS 3.67.