Israeli currency is taking a hit as business sector fears mount over the possibility of a constitutional crisis brought on the Supreme Court resistance to the government’s planned judicial reforms.
As of Thursday morning, the shekel-dollar rate rose to NIS 3.85/$, a rate that has not been seen since 2015.
It’s problematic for Israelis, but terrific for tourists because it means a visitor can get more bang for the buck on their purchasing power in the Jewish State.
It’s not clear how long this tourism bonanza will continue, but it’s not likely to last very long, given the resiliency of the Israeli economy.
As for the feared constitutional crisis that is currently shaking the market: The High Court of Justice is set to hear arguments on September 12 for the first time ever on the legality of an amendment to a Basic Law.
Israel’s Basic Laws function as the state’s constitution, hence the growing fears over a constitutional crisis.
Amendment No. 4 to Basic Law: The Judiciary (also known as the “reasonableness standard”) would restrict the Court’s ability to strike down government appointments and laws passed by the Knesset, based on whether the judge feels them to be “reasonable.”
In July, the Knesset Plenum voted to approve the amendment, triggering a plethora of lawsuits and petitions to the High Court of Justice against the legislation.
Israel’s High Court has never dared to rule on the legality of a Basic Law, so a major drama is expected to unfold next week.