JERUSALEM (JTA) — Dr. Karnit Flug has been chosen to serve as Israel’s next governor of the Bank of Israel, the first woman ever to hold the prestigious position.

Flug, whose appointment was announced Sunday by Prime Minister Benjamin Netanyahu and Finance Minister Yair Lapid, previously served as deputy governor of the Bank of Israel since July 2011, and was recommended by her predecessor Stanley Fischer to be his replacement. She has served as acting governor since Fischer stepped down on June 30.

Her appointment comes after two would-be appointees withdrew their names from the nomination after embarrassing personal information came to light.

Lawrence Summers, a former U.S. Treasury Secretary and president of Harvard University, also reportedly turned down the post last week.

Flug had resigned from her position after being passed over to replace Fischer.

“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,” Netanyahu and Lapid said in a brief statement.

Flug’s nomination must be confirmed by the Knesset.

Flug received a PhD in economics from Columbia University in 1985 and worked at the International Monetary Fund before joining the Bank of Israel in 1998.