According to an announcement on the website of the Bank of Israel, the Israeli currency market experienced a sharp increase in average daily trading volume during 2014, accompanied by a decline in nonresidents’ share of the trading volumes.
Throughout 2014, the average daily volume of trade in foreign currency in 2014 was about $6.4 billion, which was higher by close to 45% when compared to the previous year, when trading declined. The bulk of the increase was in swap deals, which grew on average by about 87% percent, totaling an average monthly level of $79 billion throughout 2014.
On the other side of the spectrum, spot and forward transactions have grown by 14%, to an average of $38 billion per month in 2014, with the Bank of Israel purchasing close to $7 billion in spot and forward transactions.
Half of that sum ($3.5 billion) was spent in relation to a purchasing program intended to offset the effects of Israeli natural gas production on the Exchange rate.
Trading conducted by nonresidents declined by 9% in 2014, to about 31% of the total, accelerating the decline which started in 2013. Israelis’ average share of the average monthly trading volume increased to 69 percent.
Nonresidents' Share of Average Monthly Volume, Source: Bank of Israel
For the month of December, total trading volumes in foreign exchange was $176 billion, when compared to about $138 billion in November.
December Forex Transactions With Domestic Banks
