The Bank of Israel sold $8.2 billion of foreign currency in October to help prevent the sharp decline of the shekel, it said on Tuesday.
It is the first time the Bank has sold foreign exchange after reserves stood at $198.553 billion in September.
The Central Bank launched a $30 billion program to sell foreign exchange at the beginning of the war against the Hamas movement in Gaza to protect the shekel from collapse.
It also said it would provide dollar liquidity to the market through SWAP mechanisms of as much as $15 billion.
The Bank's current level of foreign exchange is the lowest level recorded in a year, although it is still higher than the average over the past decade.
Last month, the Bank of Israel reviewed its growth expectations, and its research department said it now expects the economy to grow by 2.3 percent in 2023 and by 2.8 percent in 2024 as private consumption falls and the ability to work is constrained.
The value is down from its previous forecasts of 3 percent growth this year and next.
The updated economic forecasts were presented as the central Bank held the benchmark rate at 4.75 percent when the war escalated and the shekel continued its decline, nearing its lowest levels ever.
The Bank stated that the Monetary Policy Committee decided to keep the interest rate unchanged despite Israel's involvement in the operations resulting from the escalation in Gaza for more than two weeks.
Local media reports revealed the challenges that Israel is suffering from as the war continues, as the Israeli army's losses continue to rise.
According to the Jerusalem Post, there are five primary challenges facing Israel, including an economic recession.
It explained that leading economists have forecasted that the Israeli economy is poised to slide into a recession as the conflict continues, and more than 360,000 reservists who are currently called up for duty are diverted from their regular jobs.
At the beginning of this week, the Ministry of Finance estimated that Israel's losses from its war in Gaza had reached $50 billion, describing the cost as exorbitant.
The daily said the estimate, equal to 10% of gross domestic product, was premised on the war lasting between eight to 12 months, on it being limited to Gaza, without full participation by Lebanon's Hezbollah, Iran, or Yemen, and on some 350,000 Israelis drafted as military reservists returning to work soon.
The Ministry expects 8.5 percent of the conscripts to return to work immediately after the fighting stops.
