Dr. Karnit Flug
Dr. Karnit FlugFlash 90

Bank of Israel Governor Dr. Karnit Flug spoke with Prime Minister Binyamin Netanyahu and informed him that she has decided not to stand as a candidate for an additional term as Governor of the Bank of Israel.

Her five-year term in office will end, by law, on November 12, 2018.

In a letter that the Governor submitted to the Prime Minister, she noted, among other things, that “I was privileged to head an organization of the highest quality, which works with professionalism, dedication, and loyalty, and that on a daily basis lives up to the vision it set for itself—to be among the most advanced central banks and to contribute to the prosperity of Israel and the welfare of its citizens. This is not the time for summing up, but I can already say that I will end my tenure with a feeling of great satisfaction, as the Bank of Israel has a marked role in the robust state and the stability displayed by Israel’s economy in recent years, as well as in the analysis and the promotion of discussion regarding the considerable challenges we will face in the coming years.”

Flug emphasized that she will continue to lead the Bank of Israel in all of its functions, particularly the conduct of monetary policy, until the day her term ends and the term of the next Governor begins. ​

Netanyahu thanked Dr. Flug for her dedicated service and very much appreciates her contribution to the Israeli economy.

Flug was appointed as Bank of Israel Governor in 2013 to replace Stanley Fischer after a lengthy process which saw Israel go for more than 100 days without a governor.

The position was originally offered to Professor Jacob Frenkel, who previously served two terms as the Governor of the Bank of Israel between 1991 and 2000. Frenkel, however, withdrew his candidacy because of allegations that he shoplifted an item in Hong Kong several years ago.

Netanyahu and then-Finance Minister Lapid subsequently offered the position to Professor Leo Leiderman but he, too, withdrew his candidacy for the position before Flug was named Governor.

Netanyahu and Lapid were criticized for not having offered the position to Flug right away. Netanyahu reportedly rejected her outright, since she did not agree with him on certain issues.

(Arutz Sheva’s North American desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Arutz Sheva articles, however, is Israeli time.)