July 07--Foreign currency reserves at the end of June rose to a record $86.813 billion from $86.478 billion the previous month, the Bank of Israel reported today.
The increase was the result of foreign currency purchases by the Bank of Israel totaling $290 million during June. This amount was bought as part of the purchase program to offset the effects of natural gas production on the exchange rate. There was also a revaluation that increased the reserves by about $269 million and private sector transfers that totaled about $98 million.
The rise was partially offset by government transfers abroad of about $322 million.
Foreign currency reserves have risen from $78.22 billion 12 months ago. Despite major foreign currency purchases by the Bank of Israel to weaken the shekel, the Israeli currency is the strongest it has been for three years against the dollar.
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