Bank of Israel intervened in the foreign exchange market in June to counter excessive appreciation of the shekel, the country's national currency, in a bid to maintain market stability.
According to official statements released by the bank, a total of 1.027 billion US dollars were purchased from the market in June. The institution stated that the primary objective of this measure was to preserve stability in the foreign exchange market, prevent sharp fluctuations in the exchange rate, and ensure the normal functioning of the financial market.
The central bank emphasized that this was not a routine currency purchase, but rather a targeted intervention aimed at regulating abnormal market processes. The rapid appreciation of the shekel in recent months has created additional risks for exporters and certain sectors of the country's economy.
It should be noted that Bank of Israel resumed intervention in the foreign exchange market approximately two months prior. Before that, the last similar intervention was carried out in 2022.
According to financial analysts, if the US dollar continues to weaken against the shekel, the central bank may intervene in the market again in the coming months. However, experts believe that the regulatory authority will continue this process in a gradual and cautious manner to avoid creating additional pressure on the market.