Flug fills top job at Bank of Israel after two years as deputy

THE BANK of Israel named a new governor yesterday, promoting deputy governor Karnit Flug, who has been acting head since earlier in the year.

Flug has been acting as the Bank’s governor since Stanley Fischer stepped down in June, and has worked for the Bank of Israel since joining in 1984. She was appointed to the position of deputy governor in 2011.

Professor Leo Leiderman of Tel Aviv University was named for the post in August, but withdrew days later, citing personal reasons.

Former governor Jacob Frenkel was also considered for the post, but withdrew his candidacy after revelations of an alleged incident in which he was detained for shoplifting at an airport.

The shekel has strengthened recently, with inflation at 1.3 per cent. According to Standard & Poor’s assessment of the Israeli economy, considerable investment from international sources has put upward pressure on the Israeli currency.