Shekel Soars Ahead of High Court Hearing on Reasonableness Invalidation
In a surprising turn of events, the shekel surged this morning in anticipation of the High Court hearing on the invalidation of the reason for reasonableness. All 15 judges of the Supreme Court will convene to discuss the petitions against the cancellation of this crucial element. The petitions argue that the amendment to the law, passed in the Knesset by a majority of 64 coalition members, should be invalidated.
The controversial amendment to the Basic Law: the Judiciary, which was approved by the Knesset on July 24, aims to prevent the High Court from intervening in decisions made by the government or other ministers based on the reason of reasonableness. This principle enables the High Court to intervene in exceptional cases where administrative decisions are deemed to be extremely unreasonable.
If the amendment is upheld, the High Court’s ability to challenge decisions made by the executive branch would be significantly restricted. Critics argue that this would curtail the court’s role as a check on government power, potentially undermining the separation of powers and eroding the citizens’ trust in the judiciary.
However, supporters of the amendment argue that it will restore balance in the relationship between the court and the government. They contend that the High Court has frequently overstepped its boundaries by interfering in decisions that should be left to the executive branch. They assert that the amendment will promote stability and respect for the democratic process.
As the High Court prepares for this landmark hearing, the shekel experienced an impressive jump in value. The dollar fell by 0.9%, with the exchange rate now at NIS 3.812. Similarly, the euro weakened by 0.8%, trading for NIS 4.09.
Meanwhile, in the international markets, the euro faced a minor setback of 0.1% against the dollar, with the currency pair trading at 1.074 dollars to the euro.
The outcome of this High Court hearing will have far-reaching implications for the Israeli legal system. It will determine the extent to which the court can intervene in decisions made by the government. While critics fear the erosion of judicial powers, supporters believe this amendment will restore balance and respect for the executive branch’s authority.
The shekel’s significant jump underscores the stakes involved in this legal battle, as investors brace themselves for potential changes in the power dynamics between the judiciary and the government. The financial markets will closely monitor the High Court’s decision, as it will undoubtedly have a lasting impact on both the shekel’s value and the country’s legal landscape.