ANNOUNCEMENT 20 Jan 2011In January 2011, the government of Israel announced a rule change for commercial cross-border financial flows.
NUMBER OF INTERVENTIONS
Bank of Israel. (20 January 2011). Imposition of a Reserve Requirement on Foreign Exchange Derivative Transactions by Nonresidents . Available at http://www.bankisrael.gov.il/press/eng/110120/110120v.htm
On 20 January 2011, the Bank of Israel announced that it would implement reserve requirements for foreign exchange derivative transactions involving nonresidents.
Effective 27 January 2011, Israeli banks shall meet a reserve requirement of 10 percent on foreign exchange swaps and foreign exchange forwards executed on behalf of a nonresident.
The Bank of Israel motivated the move from an increased buildup of short run positions held by nonresidents in the recent past.