Bank of Israel's Forex Intervention Aims to Stabilize Market Amid Irregular Activity
The Bank of Israel has intervened in the foreign exchange market for the first time since the COVID-19 pandemic, purchasing $801 million in May. This action was taken in response to what the bank described as 'irregular market activity,' rather than to influence the shekel's exchange rate. The central bank's foreign currency reserves increased to $238.681 billion by the end of May, a rise attributed to a $2.685 billion revaluation of reserves and the recent currency purchases. The intervention was reportedly aimed at maintaining the orderly functioning of the markets, although foreign exchange experts suggest it may have been a response to speculative activities. Brokers noted that the intervention helped push the dollar above 2.90 shekels, after it had been trading below 2.80 shekels earlier in the week. 
