Jerusalem, 15 November 1999
Bank of Israel Governor Frenkel Resigns
(Communicated by Bank of Israel Spokesman and Prime Minister's
Media Adviser)
Bank of Israel Governor Jacob Frenkel announced to Prime Minister
Ehud Barak his decision to resign from his post as of 2 January,
2000. The Governor was appointed as Governor in August 1991 and
was reappointed in 1996, serving nine years in his post.
In a letter sent to the Prime Minister several months ago,
Professor Frenkel noted that the policy objectives he defined
upon entering his job have been achieved in full: Inflation has
been reduced to its lowest level in three decades and today
approaches the rate prevailing in developed countries; the
liberalization of the foreign currency market has been highly
successful and the exchange-rate regime has become flexible;
Israel's money and capital markets have become an integral part
of international markets; the Israeli banking system is modern
and robust and the Israeli economy has become a preferred market
for foreign investors. In particular, while absorbing large-scale
immigration, the Israeli economy has managed to integrate into
the global economy with the utmost, as is appropriate in the era
of globalization. Now, the Israeli economy is ready to resume
sustained growth, as recently published economic data indicates.
The Governor pointed out to the Prime Minister that for some time
he has been considering his decision to end his public duties and
continuing other activities. However, because the general
elections had been brought forward, his concern for and
responsibility for the stability of financial markets led him to
defer the implementation of his personal plans the cloud of
political uncertainty had dispersed and until the economic
strategy has been put in place.
The Governor also noted that during his term of office, he had
been able to serve the State of Israel at a time of dramatic
changes, including the large-scale absorption of immigrants, the
peace process and the Israel's integration into the global
economy. The Governor added that during his years in office, he
has had the privilege of working with five prime ministers and is
deeply grateful for the opportunity granted to him to make his
own humble contribution to the attainment of Israel's economic
goals. He wishes success to the Prime Minister and government
every success in continuing on this path and in aspiring towards
the full implementing of the economic policies that would benefit
the country as a whole.
The Prime Minister expressed his great appreciation and gratitude
for the Governor's contribution in reducing inflation, achieving
economic stability, improving Israel's financial standing and
successfully integrating the Israeli economy with the world.
Considering the Governor's consistency, determination, firmness
and professionalism in his endeavors to achieve the country's
economic goals, chief among them being the attainment of the
conditions for sustainable growth.
The Prime Minister said that the Governor's policies during his
terms of office have firmly established the status of the Bank of
Israel and paved the road - on which it will be necessary to
persist - for the Israeli economy to successfully meet the
challenges of the 21st century.
The Prime Minister praised the cooperation evident between
himself, the Governor and the Finance Minister under the current
administration and during the discussions on the budget and
inflation targets for the coming years. He concluded by stating
that he would appoint a new governor as soon as possible.