Former Bank of Israel Governor Warns Netanyahu Against Damaging Israel's Global Economic Standing
Translated & summarized from Maariv by baba
Former Bank of Israel Governor Jacob Frenkel criticized Prime Minister Benjamin Netanyahu's remarks on sanctions and digital currencies, warning they could harm Israel's international economic credibility. Frenkel suggested the statements might be politically motivated due to upcoming elections. He stressed that a small nation like Israel cannot afford to be excluded from global financial systems and that Netanyahu's comments send illogical messages of panic or disregard for intelligence.
The story in 5 lines · by baba
- Former Bank of Israel Governor Jacob Frenkel warned Netanyahu's statements could damage Israel's global economic credibility.
- Frenkel questioned the timing of Netanyahu's remarks, suggesting a link to upcoming elections.
- He stated a small nation like Israel cannot afford to be ostracized from global financial systems.
- Frenkel described the Netanyahu he knew as "very responsible" but noted a change in approach.
- He characterized Netanyahu's recent messages as either panic or contempt for intelligence.
Former Bank of Israel Governor Professor Jacob Frenkel has criticized Prime Minister Benjamin Netanyahu's recent statements regarding sanctions and digital currencies, warning of potential damage to Israel's credibility in international markets. Speaking on 103FM, Frenkel questioned the timing of Netanyahu's remarks, suggesting they could be politically motivated due to the upcoming elections.
Frenkel emphasized Israel's strategy of engaging directly with global markets rather than seeking indirect routes. He stated that as a small nation, Israel must excel and lead in knowledge and innovation, fostering long-term relationships in capital markets, supply chains, and international cooperation. He cautioned against the use of the word "sanctions," particularly in the context of capital markets, which are highly liquid and interconnected with the global banking system. "If you are small, you do not have the luxury of becoming even smaller, being ostracized, and thrown out," Frenkel asserted, highlighting the severe consequences of being excluded from international financial systems.
Recalling his past interactions with Netanyahu, Frenkel described the Prime Minister he knew as "very responsible." However, he noted that in the past, potential dangers were addressed proactively and discreetly rather than announced publicly. Frenkel expressed uncertainty about what might have changed in Netanyahu's approach but reiterated that a small country cannot afford to alienate itself from global economic systems.
Frenkel suggested that Netanyahu's statements might be interpreted as either panic or a dismissal of intelligence, possibly aimed at voters. He argued that such pronouncements send confusing messages to citizens, investors, and international rating agencies. "The message is either one of panic or of contempt for intelligence: 'Don't take me seriously because I'm running for elections,'" he concluded, deeming these messages illogical. He urged the public to accept that power is limited and that Israel, being dependent on the world, must focus on integration rather than isolation.
