Public bought $1.8 billion foreign currency since December interest rate cut

Israelis invested some $800 million overseas in January
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The public has acquired foreign currency worth some $1.8 billion since interest rates were cut in December, according to a Bank of Israel report on financial activity.

In January 2002, net capital export came to about $460 million, mainly due to some $600 million invested overseas by mutual funds and institutional investors.

Israelis invested overseas about $800 million in January, of which insurance companies and mutual funds invested about $700 million in foreign bonds.

Households have acquired about $1.8 billion since interest rates were lowered. Some $640 million was invested in mutual funds specializing in foreign currency investments in Israel, and about $630 million was invested in mutual funds investing overseas. Some $500 million was invested in foreign currency-linked deposits and foreign currency-linked savings plans, most for savings periods of three to five years.