(Adds background)
JERUSALEM, March 7 (Reuters) - The Bank of Israel has
instructed local banks to report more frequently on the movement
of money in and out of Israel, a central bank spokesperson said
on Tuesday.
The new directive comes amid volatility in the Israeli
shekel since plans were laid out to overhaul the judiciary.
The spokesperson said banks have been instructed to make
their reports weekly rather than monthly.
Analysts have tied the shekel's performance to uncertainty
regarding Prime Minister Benjamin Netanyahu's plan to change
Israel's court system.
His proposal, which has already received initial
parliamentry approval, would give the government greater sway on
selecting judges and limit the power of the Supreme Court to
strike down legislation.
Critics of the changes say Netanyahu - on trial on graft
charges that he denies - is pursuing steps that will hurt
Israel’s democratic checks and balances, enable corruption and
bring diplomatic isolation.
Proponents say the changes are needed to curb what they deem
an activist judiciary that interferes in politics.
Since the proposals were introduced in January, the shekel
has slumped against the dollar, alarming investors wary that
Israel might be joining the growing list of emerging markets
taking a more authoritarian stance to decision making.
By last week, its losses reached nearly 10% against the U.S.
currency in one month to a three-year low.
A report on Monday that a compromise on the issue may be
close sent the shekel up 2% to 3.59 per dollar.
(Reporting by Ari Rabinovitch;
Editing by Andrew Cawthorne and Angus MacSwan)
Messaging: ari.rabinovitch@thomsonreuters.com@reuters.net))
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