It’s official: Flug is first female to head Bank of Israel


JERUSALEM (JTA) — Israel’s Cabinet unanimously approved the appointment of Karnit Flug as Bank of Israel governor, making her the first woman in the post.

The Cabinet on Sunday gave its support to the nomination by Finance Minister Yair Lapid and Prime Minister Benjamin Netanyahu. Several days earlier, an advisory panel chaired by retired Supreme Court Justice Jacob Turkel backed Flug for the position.

The deputy governor since July 2011, Flug has been serving as acting governor since Stanley Fischer stepped down on June 30. Fischer recommended Flug to be his replacement.

“Karnit Flug has the appropriate background and experience, and she has fulfilled her position in recent months very well,” Netanyahu said in a statement following the approval.  “In addition to the fact that we are successfully navigating the Israeli economy in the face of the global crisis, Israel’s economic leadership must continue to advance growth and employment, increase exports and lower housing prices.”

Her appointment comes after two would-be appointees withdrew their names from the nomination after embarrassing personal information came to light.

Lawrence Summers, a former U.S. Treasury secretary and president of Harvard University, also reportedly turned down the post earlier this month.

Flug had resigned from her position after being passed over to replace Fischer.



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