Israel adds Chinese Yuan to Foreign Currency Reserves, reducing the im

Tel Aviv: Until 2021, the Israeli foreign reserves had only USD, Euro and GBP. But in the current fiscal the Israeli central bank has reduced the dependence on USD and Euro and has decided to include Chinese Yuan, Canadian (CAD) and Australian (AUD) Dollars and Japanese Yen in the foreign reserves. The central bank has taken this decision given the current geopolitical developments.

The Israeli foreign reserves have reached $200 billion for the first time. Till date, USD has a 65% share and Euro has a share of 30%. The share of the GBP was 5% in the Israeli foreign reserves. But the Israeli central bank announced that other currencies would be included in the foreign reserves, given the need for a definite return on the foreign reserves.

Accordingly, the percentage of USD and Euro in the foreign reserves will be reduced. Share of the USD will be brought down to 61% from 65%. The share of the Euro will be reduced from 30% to 20%. The share of the GBP will go up in comparison. CAD and AUD will have a share of 3.5% each. Whereas the Chinese Yuan will get a share of only 2% in the Israeli foreign reserves.

A few days ago, the International Monetary Fund (IMF) expressed concerns over the depreciating USD value. The IMF had noted that such a decline had not been witnessed in the last two decades. The international media had warned that China is exploiting the devaluation of the USD for its benefit. As per analysts, China is benefiting even from the Russia-Ukraine war.