Israel's foreign exchange reserves increased by $10.2 billion in 2010, compared with an increase of $17 billion in 2009, and at the end of December 2010 stood at $69.3 billion.

As was the case in the prior two years, the increase in the reserves this year was due mainly to the Bank of Israel's purchases of foreign exchange. The upward trend of foreign exchange reserves also continued in 2010 in other advanced economies and emerging market economies as well as in Israel, as the global financial crisis drew attention to the importance of maintaining an appropriately high level of reserves. The increase in the foreign exchange reserves in 2010 led to an increase in the ratios of the reserves to various aggregates which are customarily used to assess the adequacy of a country’s reserves.

The high levels of these ratios strengthen the economy’s resilience to crises and improve Israel's status in the international financial environment, thus enhancing the Bank of Israel's ability to achieve its objectives as defined in the new Bank of Israel Law.