The Bank of Israel has instructed local banks to report more frequently on the movement of money in and out of Israel, a central bank spokesperson said on Tuesday.

The new directive comes amid volatility in the Israeli shekel since plans were laid out to overhaul the judiciary.

The spokesperson said banks have been instructed to make their reports weekly rather than monthly.

Analysts have tied the shekel’s performance to uncertainty regarding Prime Minister Benjamin Netanyahu’s plan to change Israel’s court system.

His proposal, which has already received initial parliamentry approval, would give the government greater sway on selecting judges and limit the power of the Supreme Court to strike down legislation.

Critics of the changes say Netanyahu – on trial on graft charges that he denies – is pursuing steps that will hurt Israel’s democratic checks and balances, enable corruption and bring diplomatic isolation.

Proponents say the changes are needed to curb what they deem an activist judiciary that interferes in politics.

Since the proposals were introduced in January, the shekel has slumped against the dollar, alarming investors wary that Israel might be joining the growing list of emerging markets taking a more authoritarian stance to decision making.

By last week, its losses reached nearly 10 per cent against the US currency in one month to a three-year low.

A report on Monday that a compromise on the issue may be close sent the shekel up 2 per cent to 3.59 per dollar.