The main tool is, of course, the interest rate tool, which has reached a very low level. The Bank of Israel has for the past few years been pursuing a policy of involvement in the foreign exchange market in cases of excessive volatility in the exchange rate that is not in line with the fundamental economic conditions.
The Bank also purchases foreign exchange in order to offset appreciation pressures derived from market overshooting in reaction to the production of natural gas. It is important to note that our foreign exchange policy takes the long-term economic forces into account, and we are acting to give the business sector time to adjust to the trends derived from these forces.