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The Ministerial Committee for Legislation is to begin deliberations today on the draft of the new Bank of Israel Law drawn up by the central bank together with the ministries of finance and justice. The new law is intended to supersede the current BoI Law, which has been in place for 55 years and is considered obsolete.

The draft calls for the creation of a six-member monetary committee that will set all monetary policy, as well as an administrative council that would function as a board of directors. The bill also specifies mechanisms for overseeing wages at the Bank of Israel.

Work on a new law for the central bank began 12 years ago. When Stanley Fischer was appointed Bank of Israel governor five years ago he said that pushing the law through would be one of the main goals of his time in office. In realizing his vision he has had to overcome tough opposition from various quarters, especially the Finance Ministry, whose main problem was with the supervision of salaries at the central bank.

It was the intervention of Prime Minister Benjamin Netanyahu a few months ago that paved the road to an agreed draft, and its submission to the ministerial committee today.