Israel's Central Bank Adds Chinese Yuan To Holdings, Cuts Share Of US Dollars

Zinger Key Points
  • Canadian and Australian dollars and Japanese yen are also added.
  • Central bank increases British pound holdings.

Israel’s central bank is reducing its holdings of U.S. dollars and euros and adding four new currencies, including the Chinese yuan.

What Happened: Israel’s foreign currency reserves surpassed the $200-billion mark in 2021, an all-time high. The Jerusalem Post reported the Bank of Israel traditionally focused on the U.S. dollar, the euro and the British pound for its foreign currency holdings.

In addition to the yuan, the Bank of Israel will now include the Canadian and Australian dollars and the Japanese yen. To accommodate these changes, the central bank will reduce its holdings of the U.S. dollar from 66.5% to 61% and shrink its euro holdings from 30.8% to 20%.

See Also: Benzinga's All Access: 4 ESG Stocks For Earth Day

Why It Happened: Bank of Israel Deputy Governor Andrew Abir said the changes marked a shift in the central bank’s “whole investment guidelines and philosophy,” noting the increased level of the country’s foreign exchange reserves sparked "the need to earn a return on the reserves that will cover the costs of liability.”

Still, the policy change will not create a dramatic reconfiguration of the foreign currency reserve balance. The British pound holdings that were at 2.5% will increase to 5%, while the yen will also be at a 5% level and the Canadian and Australian dollars will be at 3.5% each. As for the yuan, it will only occupy 2% of the central bank’s holdings.

Photo: Moerschy/Pixabay.

Posted In: Bank of IsraelChinese Yuanforeign currency holdingsisraelU.S. DollarNewsForexGlobalMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.