Israel's central bank is pushing forward with plans to issue a digital shekel, citing the need to improve the country's payment systems, but on Tuesday remained noncommittal on whether one would be launched, Reuters reported. The Bank of Israel in November 2021 stepped up its research and preparation for the possible issuance of a digital shekel to create a more efficient payments system after first considering issuing a central bank digital currency (CBDC) in late 2017.
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Israel's Supreme Court heard arguments on Tuesday against a bid by Prime Minister Benjamin Netanyahu's government to curb the court's powers, part of a judicial overhaul that has divided the nation, sparked months of protests and worried Israel's allies, Reuters reported. The court's 15 judges were hearing challenges by watchdog groups against a amendment passed in July ending the Supreme Court's ability to overturn some government decisions when it deems them "unreasonable".
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Israel’s interest rates are high enough to bolster the shekel and ensure inflation slows to 3% or less by early next year, according to the country’s central bank governor, Bloomberg News reported. “We believe the current rate is in restrictive territory,” Amir Yaron told Bloomberg Television from Jerusalem. He spoke a day after the Bank of Israel kept its benchmark rate unchanged at 4.75%, even with the shekel having recently depreciated to a three-year low. The currency weakened 0.2% to 3.79 per dollar as of 2:10 p.m. local time.
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Israel-based fintech Vesttoo is seeking chapter 11 protection in a U.S. court which will enable it to pursue legal action against those responsible for a fake collateral scandal, it said in a statement yesterday, Reuters reported. Vesttoo - partly backed by Banco Santander's fintech venture capital arm Mouro Capital - has laid off staff, closed offices and appointed an interim chief executive following the discovery of fraudulent letters of credit used on its platform. Vesttoo provides insurers with access to so-called insurance-linked securities - an alternative form of reinsurance.
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Israel’s parliament on Monday approved a law that will curb the oversight powers of the courts, a measure that has divided the nation, prompted mass protests and drawn rare US criticism. The shekel fell — recording the biggest daily loss among a basket of major currencies tracked by Bloomberg — while tens of thousands of protesters converged on the Knesset building. Opposition lawmakers boycotted the session, allowing Prime Minister Benjamin Netanyahu’s ruling coalition to pass the bill with 64 votes to 0.
Israel’s Parliament was preparing on Monday to pass a law reducing the power of judges to overrule government decisions and appointments, a plan that has sent hundreds of thousands of protesters into the streets and threatens to undermine the country’s economy and security, Bloomberg News reported. The bill is sponsored by the right-wing government of Prime Minister Benjamin Netanyahu — who was discharged from the hospital Monday and joined the debate after having a cardiac pacemaker inserted. Advocates for law argue that the courts have grown too powerful and are captured by the left.
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Nearly 70% of Israeli startups have taken action to relocate parts of their business outside Israel, a survey released on Sunday by an Israeli non-profit organisation on the government's planned judicial overhaul found, Reuters reported. The survey by Start-Up Nation Central sought to measure the economic impact plans by the hard-right coalition of Prime Minister Benjamin Netanyahu that would restrict the Supreme Court's powers to strike down legislation.
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The Bank of Israel left short-term borrowing rates unchanged on Monday for the first time in more than a year amid signs of easing inflation, but warned that rates could still be hiked further if the moderation in price growth did not continue, Reuters reported. The central bank kept its benchmark rate at 4.75% - its highest level since late 2006. It had raised rates 10 straight times in an aggressive tightening cycle that has taken the rate from 0.1% last April. "Inflation is broad and remains high.
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All five members of the Bank of Israel's monetary policy committee voted on May 22 to raise the benchmark interest rate by 0.25 percentage points to 4.75%, minutes of the discussion showed on Monday, Reuters reported. "The committee members noted that economic activity in Israel is at a high level, and is accompanied by a tight labour market, although there is some moderation in a number of indicators. Inflation is broad and remains high," the minutes said.
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The government's plan to overhaul the judicial system is harming investor confidence and pushing high-tech firms to relocate abroad, Israel's state-backed agency that supports high-tech companies said on Monday, Reuters reported. A survey by the Israel Innovation Authority found 80% of startups established so far this year were opened outside Israel and that companies also intend to register their future intellectual property overseas - which would result in a severe blow to Israel's tax coffers.
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