Bank of Israel ‚lost‘ NIS 17.9 billion in 2010

25.02.2011                      21.Adar l, 5771

Banken:

Bank of Israel 'lost' NIS 17.9 billion in 2010

As the shekel strengthened during 2010, the Bank of Israel's enormous dollar holdings became worth less and less, and this accounts for the vast majority of the loss.

The Bank of Israel recorded losses of NIS 17.9 billion in 2010, compared to a profit of NIS 1.4 billion in 2009. The central bank released its financial statement for last year yesterday, and said the profit and loss figures were really only on paper – and were the result of having to present the figures in shekels.
Almost all the paper loss, NIS 17.6 billion, is due to exchange rate fluctuations. As the shekel strengthened during 2010, the Bank of Israel's enormous dollar holdings became worth less and less, and this accounts for the vast majority of the loss. In fact, the shekel was at a particularly high level against the dollar on December 31, 2010. The Bank of Israel's foreign currency reserves totaled $70.9 billion at the end of 2010, up from $60.6 billion at the end of 2009, as Stanley Fischer, the governor of the Bank of Israel, continued to buy large amounts of foreign currency on the open market to help keep the shekel from appreciating further….