Israel's central bank said on Thursday it plans to buy $1.5 billion worth of foreign exchange in 2018 as part of its programme to offset the effect of natural gas production on the exchange rate. It has bought the same amount over the first 10 months of 2017.
"The Bank of Israel projects that the overall effect of natural gas production on the balance of payments in 2018 will be $1.5 billion, an amount identical to the bank's assessment of the effect on the balance of payments in 2017, and it will purchase foreign currency during 2018 accordingly," it said in a statement. Since May 2013 the central bank has bought $12 billion under the programme. Its foreign exchange reserves have reached $111.3 billion, or one-third of gross domestic product.