Dr. Karnit Flug. Photo: UPenn.edu.

Dr. Karnit Flug, Deputy Governor of the Bank of Israel for the past two years and director of its research department for a decade, was appointed on Sunday to head Israel’s central bank, ending a long search process to replace Stanley Fischer who stepped down recently after two terms.

In a statement, Prime Minister Benjamin Netanyahu and Finance Minister Yair Lapid said, “We have been impressed by Dr. Flug’s performance as Acting Governor in recent months and we are certain that she will continue to assist us in moving the Israeli economy to additional achievements in the face of the global economic upheaval.”

Dr. Flug is the first woman in history to serve as Governor of the BOI, and politicians lauded the appointment as a courageous decision, positively accepting the dramatic development. As a long time member of  the BOI Research Department, in June 2001 she was appointed its Director and a member of the BOI’s senior managing staff.

Dr. Flug has been the Deputy Governor of the Bank of Israel since July 2011, and was appointed interim Governor in July 2013 after former Governor Stanley Fisher concluded his second term. After a prolonged search for a new governor, Netanyahu and Lapid have made Flug’s appointment permanent. She was initially rejected by the two for the top job, but after an endorsement from Fisher and after a grueling search process, the Israeli leaders changed their minds.

Dr. Flug has an M.A from the Hebrew University and a Ph.D. in Economics from Columbia University.