Reports Suggest Efforts At Last-Minute Compromise Are Still On, Shekel Extends Recovery

The Times of Israel circulates a Channel 12 report noting that talks on a last-minute compromise over the "reasonableness" bill are still on. According to the report "the proposal being discussed (...) would be to halt the vote on the “reasonableness” law after it is approved in a second reading, and send it back to committee. The law would then be returned for its third and final reading, with a text agreed upon in talks with the opposition, in a week’s time."

• Channel 12 note that the odds of reaching an agreement are very slim, given the fierce opposition from Justice Minister Yariv Levin and National Security Minister Itamar Ben Gvir, who reportedly threatened to bring form the government if the bill does not pass in its current form today.
• Ben Gvir made his threats public and said in a statement that he regrets that "parts of the coalition are engaging in negotiations with themselves and are considering arriving at a compromise that will hollow out the law," which would "be a disgrace for the whole right wing."
• Separately, Reuters and Channel 12 cited sources noting that President Isaac Herzog is holding phone calls with key coalition figures, trying to persuade them to resume efforts towards a negotiated solution.
• Spot USD/ILS extends its pullback from session highs and returns confidently into negative territory, last changing hands at 3.6055, 200 pips lower on the day.