Israel’s Central Bank chief calls emergency meeting to discuss country’s financial situation

Bank of Israel governor and American-Israeli economist, Amir Yaron, reportedly called an emergency meeting of the Financial Stability Committee late Wednesday to discuss stabilizing the Israel’s current financial situation.

The committee normally meets once a quarter, so the alleged emergency meeting may indicate concerns about an economic downturn for the Jewish state.

On Monday, the Bank of Israel raised the interest rate to 4.25% amid concerns of a weakening shekel against the dollar.

The shekel had slightly strengthened by the close of business yesterday, after numerous dollar sales were carried out almost instantly by a large organization, which the Hebrew media reported could likely have been the Bank of Israel. Selling dollars in large amounts is a common method for the Central Bank to strengthen the shekel. The Bank of Israel refused to comment on the claim.

Some critics of Israel's proposed judicial reforms have attributed the weakening shekel to the government's legislative plans.

Israeli Prime Minister Benjamin Netanyahu refuted those claims.

At his Cabinet meeting to approve the new budget this morning, Netanyahu expressed optimism about Israel's economic future, while denouncing attempts to create politically-motivated hysteria.

“There are those who are trying to undermine the Israeli economy, to create hysteria for political reasons, hysteria that has no grip on reality. The Israeli economy will continue to strengthen thanks to our responsible and proactive economic policy and the independence of the Bank of Israel,” Netanyahu said.