Israeli shekel, stocks rally as Netanyahu pauses judicial reform
The right-wing Israeli government’s controversial judicial reform plans have divided Israeli society and led to concerns among the Israeli tech sector and global financial institutions.
Israel’s currency and stock market both performed relatively well on Monday following the government's decision to pause its controversial judicial reform plans. The legislation put forward by Prime Minister Benjamin Netanyahu, which was paused later Monday, is threatening the Israeli economy, according to some observers.
The rate of the US dollar to the New Israeli Shekel fell from 3.65 shekels to the dollar to around 3.59 shekels by around 11:30 a.m. ET — a decrease of about 2%. The Tel Aviv Stock Exchange’s two main indexes each rose about 2% on Monday.
Background: The Netanyahu government’s reform proposal would reduce the power of the Supreme Court to overturn legislation as well as assert stronger political control over judicial appointments. The Israeli right has long held the Supreme Court in contempt for thwarting its plans. The court has declared some Israeli settlements in the West Bank illegal, for example.
Supreme Court reform is a longstanding issue in Israel. At present, prospective justices are selected from a committee including current justices as well as members of the Knesset, the ruling Cabinet and the Israel Bar Association. The process has been criticized for being disproportionately influenced by the current court justices.
