The Shekel weakened on Wednesday while the coalition moved to delay a critical vote to the panel to elect judges, a point of contention in the ongoing judicial crisis. The opposition claims Netanyahu's decision to postpone the vote was a ploy to appease Justice Minister Yariv Levin and other proponents of his judicial legislation and warns negotiations ongoing to find broad agreements will end.
Read more stories:
2 View gallery
Prime Minister Benjamin Netanyahu (left) in the Knesset on Wednesday
(Photo: Reuters)
After recovering some of its lost value to the dollar earlier, trading at NIS 3.55, it was now being traded at 3.64 to the dollar and 3.93 to the Euro. The Tel Aviv stock market also saw drops in stock value.
Israel's Forum of Economists for the Protection of Democracy said that postponing the decision on the makeup of the panel would hurt the country's economy.
"Rather than increasing certainty and trust, the government is increasing instability and uncertainty in a manner that will severely impact investments in the country and investor confidence," the forum said in a statement. "It also raises concerns that the coalition intends to enact its judicial overhaul."
Prime Minister Benjamin Netanyahu paused the legislation announced by his justice minister and pushed through the legislative process by his coalition partners, after his policy saw massive public opposition inside the country and international condemnation of what is being seen as an assault on Israeli democracy, abroad.
2 View gallery
Prime Minister Benjamin Netanyahu casts his vote for lawmakers to join panel to select judges
(Photo: Alex Kolomoisky)
Israel's credit rating was put on notice by major credit firms as investors in the all-important hi-tech industry threatened to dry up.
"The drop, in value of the shekel compared to the dollar and euro indicates the markets are aware of the damage to the economy caused by the government which is preoccupied with political gamesmanship rather than dealing with the country's real problems," the economic forum said.
Governor of the Bank of Israel Amir Yaron warned he would have to raise the interest rate next month adding to the financial burden on Israeli households and increasing the rate of inflation.