Israeli new shekel

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"Israeli shekel" redirects here. For the currency of Israel between 1980-1985, see the old shekel, and for the currency of Israel between 1952-1980, see Israeli pound.
For the unit, see Shekel.
Israeli new shekel
שקל חדש (Hebrew)
شيقل جديد (Arabic)
Money IL WV.JPG
New shekel banknotes and coins (Series B)
ISO 4217 code ILS
Central bank Bank of Israel
 Website bankisrael.gov.il
User(s)  Israel
 Palestinian Authority[1]
Inflation -0.7% (August 2016)
 Source Bank of Israel, August 2016
Subunit
1100 agora
Symbol
Plural shekels
sheqalim
agora agoras
agorot
Coins 10 agora, ₪½, ₪1, ₪2, ₪5, ₪10
Banknotes ₪20, ₪50, ₪100, ₪200

The Israeli new shekel (Hebrew: שֶׁקֶל חָדָשׁ About this sound Sheqel H̱adash; Arabic: شيقل جديد‎‎ shēqel jadīd; sign: ; code: ILS), also known as simply the Israeli shekel and formerly known as the New Israeli Sheqel (NIS), is the currency of Israel and is also used as a legal tender in the Palestinian territories of the West Bank and the Gaza Strip. The new shekel is divided into 100 agora. The new shekel has been in use since 1 January 1986, when it replaced the hyperinflated old shekel at a ratio of 1000:1.

The currency sign for the new shekel ⟨  ⟩ is a combination of the first Hebrew letters of the words shekel (ש) and ẖadash (ח). Alongside the shekel sign, the following abbreviations of NIS, ש"ח and ش.ج are also used commonly to denominate prices.

History[edit]

The origin of the name "shekel" (שקל) is from the ancient biblical Israeli currency by the same name. Shekel is any of several ancient units of weight or of currency in ancient Israel. Initially, it may have referred to a weight of barley. In ancient Israel, the shekel was known to be about 180 grains (11 grams or .35 troy ounces).

After the formation of the modern State of Israel on 14 May 1948, until 1952 banknotes continued to be issued by the Anglo-Palestine Bank as Palestine pound which was pegged to the British Pound.[2] [3] In 1952, the Anglo-Palestine Bank changed its name to Bank Leumi Le-Yisrael (Israel National Bank) and the currency name became Israeli pound.[4]

Israeli Pound (1948-1980)[edit]

Main article: Israeli pound

The Israeli pound (לירה ישראלית) was the currency of the State of Israel from August 1948 until 23 February 1980, when it was replaced with the shekel on 24 February 1980. From 1955, after the Bank of Israel was established and took over the duty of issuing banknotes, only the Hebrew name was used, along with the symbol "I£".[5] The pegging to the British Pound was abolished on 1st January 1954, and in 1960, the sub-division of the Israeli pound was changed from 1000 prutot to 100 agorot.

During the 1960s, a debate over the non-Hebrew name of the Israeli currency resulted in a law ordering the Minister of Finance to change the name pound into a Hebrew name, Shekel (שקל). The law allowed the minister to decide on a proper date for the change. The law did not come into effect until February 1980, when the Israeli government decided to change the monetary system and introduce the shekel at a rate of 1 shekel = I£10.

Shekel (1980-1985)[edit]

Main article: Old Israeli shekel

The shekel, now known as the old shekel was the currency of the State of Israel between 24 February 1980 and 31 December 1985. The Israeli pound and its successor, the old shekel, all experienced frequent devaluations against foreign currencies during the 1960s and '70s. This trend culminated in the old shekel experiencing hyperinflation in the early 1980s. After inflation was contained as a result of the 1985 Economic Stabilization Plan, the new shekel was introduced, replacing the old shekel on 1 January 1986 at a rate of IS 1,000 to ₪1.

New Shekel (1985-present)[edit]

Since the economic crisis of the 1980s and the subsequent introduction of the new shekel in 1985, the Bank of Israel and the government of Israel have maintained much more careful and conservative fiscal and monetary policies, and have gradually introduced various market-based economic reforms. In addition, the signing of free trade agreements helped the Israeli economy become more competitive, while heavy investment in its industrial and scientific base allowed the country to take advantage of opportunities associated with the rise of the global knowledge economy, thus greatly increasing exports and opening new markets for its products and services. As a result of these factors, inflation has been relatively low and the country now maintains a positive balance of payments, with a current account surplus equivalent to about 3% of its GDP in 2010. Consequently, its currency has strengthened considerably, rising approximately 20% in value relative to the US dollar in the 2000s decade, thereby reversing the trend of historical weakness the Israeli currency exhibited in the decades prior.

Since 1 January 2003, the new shekel has been a freely convertible currency. Since 7 May 2006, new shekel derivative trading has also been available on the Chicago Mercantile Exchange.[6] This makes the new shekel one of only twenty or so world currencies for which there are widely available currency futures contracts in the foreign exchange market. It is also a currency that can be exchanged by consumers in many parts of the world.[7][8] On 26 May 2008, CLS Bank International announced that it would settle payment instructions in new shekels, making the currency fully convertible.[9]

Coins[edit]

In 1985, coins in denominations of 1, 5, and 10 agora and ₪½ and ₪1 were introduced.[10] In 1990, ₪5 coins were introduced,[11] followed by ₪10 coins in 1995.[12] Production of 1 agora pieces ceased in 1990, and they were removed from circulation on 1 April 1991.[citation needed] A ₪2 coin was introduced on 9 December 2007.[13] The 5 agora coin, last minted in 2006, was removed from circulation on 1 January 2008.[14]

In April 2011, it was reported that new coins would be minted that would use less metal and thus lower costs. Counterfeiting would also be harder.[15] The Bank of Israel is considering dropping the word "new" on the planned coins series. If approved, this would be the first replacement of all coins since the introduction of the new shekel coins in September 1985.[16] The coins are minted by the Korea Minting and Security Printing Corporation (KOMSCO).[17]

New Shekel coin series
Image Value Technical parameters Description Date of
Diameter Thickness Mass Composition Edge Obverse Reverse issue withdrawal
Israel 1 Agora 1985 Obverse & Reverse.jpg 1 agora 17 mm 1.2 mm 2 g Aluminium bronze
92% copper
6% aluminium
2% nickel
Smooth Ancient galley, the state emblem, "Israel" in Hebrew, Arabic and English Value, date 4 September 1985 1 April 1991
Israel 5 Agorot 1985 Edge, Obverse & Reverse.jpg 5 agora 19.5 mm 1.3 mm 3 g Smooth Replica of a coin from the fourth year of the war of the Jews against Rome depicting a lulav between two etrogim, the state emblem, "Israel" in Hebrew, Arabic and English 1 January 2008
Israel 10 Agorot 1985 Edge, Obverse & Reverse.jpg 10 agora 22 mm 1.5 mm 4 g Smooth Replica of a coin issued by Antigonus II Mattathias with the seven-branched candelabrum, the state emblem, "Israel" in Hebrew, Arabic and English Current
Israel Half New Sheqel 1985 Edge, Obverse & Reverse.jpg ₪½ 26 mm 1.6 mm 6.5 g Smooth Lyre, the state emblem Value, date, "Israel" in Hebrew, Arabic and English Current
Israel 1 New Sheqel 1985 Edge, Obverse & Reverse.jpg ₪1 18 mm 1.8 mm 4 g Cupronickel
75% copper
25% nickel[18]
Smooth Lily, "Yehud" in ancient Hebrew, the state emblem Value, date, "Israel" in Hebrew, Arabic and English 4 September 1985 Current
Israel 2 New Sheqels 2010 Edge, Obverse & Reverse.jpg ₪2 21.6 mm 2.3 mm 5.7 g Nickel bonded steel Smooth with 4 regions of grooves Two cornucopia, the state emblem 9 December 2007 Current
Israel 5 New Sheqels 2012 Edge, Obverse & Reverse.jpg ₪5 24 mm 2.4 mm 8.2 g Cupronickel
75% copper
25% nickel
12 sides Capital of column, the state emblem 2 January 1990 Current
Israel 10 New Sheqels 2011 Edge, Obverse & Reverse.jpg ₪10 23 mm
Core: 16 mm
2.2 mm 7 g Ring: Nickel bonded steel
Center: Aureate bonded bronze
Reeded Palm tree with seven leaves and two baskets with dates, the state emblem, the words "for the redemption of Zion" in ancient and modern Hebrew alphabet Value, date, "Israel" in Hebrew, Arabic and English 7 February 1995 Current
For table standards, see the coin specification table.

Banknotes[edit]

Series A (1985-1999)[edit]

Beginning on 4 September 1985, banknotes were introduced in denominations of ₪5, ₪10, and ₪50. An ₪1 note followed on 8 May 1986 and the ₪20 note issued on 2 April 1988 completed the family.[19] The ₪1, ₪5 and ₪10 notes used the same basic designs as the earlier IS 1000, 5000, and 10 000 notes but with the denominations altered.

In 1986, ₪100 notes were introduced, followed by ₪200 notes in 1991. The ₪1, ₪5 and ₪10 notes were later replaced by coins. A plan to issue an ₪500 banknote, carrying the portrait of Yitzhak Rabin, was announced shortly after Rabin's assassination in 1995. However, due to low inflation rates, there was no need for such a banknote and it was never issued.[20]

Image Value Dimensions Colour Obverse Reverse Date of issue Date of withdrawal
Israel 1 Sheqel 1986 Obverse & Reverse.jpg ₪1 76x 138 mm green Maimonides Tiberias where Maimonides is buried; Ancient stone lamp 8 May 1986 1995
Israel 5 New Sheqalim 1987 Obverse & Reverse.jpg ₪5 blue Levi Eshkol Pipe carrying water, symbolizing the national carrier, fields and barren land in background 4 September 1985 1995
Israel 10 New Sekel 1985 Obverse & Reverse.jpg ₪10 orange Golda Meir Picture of Golda Meir in the crowd, in front of the Moscow Choral Synagogue, as she arrived in Moscow as Israel's ambassador in 1948 4 September 1985 1995
Israel 20 New Sheqalim 1993 Obverse & Reverse.jpg ₪20 dark gray Moshe Sharett The original building of Herzliya Gymnasium, Little Tel Aviv in background 2 April 1988 1 July 2000
Israel 50 New Sheqalim 1992 front & back.jpg ₪50 purple Shmuel Yosef Agnon Jerusalem skyline 4 September 1985 1 July 2000
Israel 100 New Sheqalim 1995 front & back.jpg ₪100 brown Yitzhak Ben-Zvi Peki'in Synagogue with carob tree and cave, Ancient stone lamp 19 August 1986 1 July 2000
Israel 200 New Sheqalim1994 Obverse & Reverse.jpg ₪200 red Zalman Shazar A girl writing on a desk as a symbol of the Compulsory Education Law was initiated by Shazar, and Hebrew block letters in background 16 February 1992 1 July 2000

Series B (1999-present)[edit]

The Second series of bank notes were released in 1999, replacing the first series by 2005. In February 2008, the Bank of Israel announced that the planning of the third series of banknotes has started and that the third series, to be issued in 2010, will most probably include a NIS 500 banknote as well.[citation needed] Though still not decided officially, the new series is likely to consist of polymer notes only.

In December 2009, the Bank of Israel announced a new series to be issued in 2012, which would bear the images of Theodor Herzl, David Ben-Gurion, Menachem Begin, and Yitzhak Rabin. The plan to issue an ₪500 note was officially abandoned.[21] The announcement was publicly criticized and, a few days later, the governor of the Bank of Israel announced that the issue be reconsidered.[22]

With the issuing of the third series of the currency in 2014, the Bank of Israel has adopted the standard English spelling shekel and plural shekels for the currency.[23] Previously, the Bank had formally used the Hebrew transcriptions sheqel and sheqalim (from שְׁקָלִים).[24]

Second series of the new shekel
Image Value Dimensions Colour Obverse Reverse Date of issue
Israel-20-New-Sheqalim-1998-revers.jpgIsrael-20-New-Sheqalim-1998-avers.jpg ₪20 71x 138 mm Green Moshe Sharett Jewish volunteers in World War II; a watchtower, commemorating tower and stockade settlements 3 January 1999
20 NIS Bill (polypropylene) Obverse & Reverse.jpg ₪20 Green Moshe Sharett Jewish volunteers in World War II; a watchtower, commemorating tower and stockade settlements. The additional red text on the polypropylene note reads "60 Years of the State of Israel" in Hebrew in red ink. It was only featured in a 1.8 million limited run close to the noted anniversary and is not present on a majority of notes.
(Made of polypropylene, a polymer substrate, which is superior to the current paper note with a circulation life of a few months only. The polymer note is printed by Orell Füssli Security Printing of Zürich, Switzerland.)
13 April 2008
50 NIS Bill Obverse & Reverse.jpg ₪50 Purple Shmuel Yosef Agnon Agnon's notebook, pen and glasses, Jerusalem and the Temple Mount 31 October 1999
100 NIS Bill Obverse & Reverse.jpg ₪100 Brown Yitzhak Ben-Zvi Peki'in Synagogue 3 January 1999
200 NIS Bill Obverse & Reverse.jpg ₪200 Red Zalman Shazar a street in Safed and text from Shazar's essay about Safed 31 October 1999

Series C (2014-present)[edit]

The committee proposed that the new series would bear the portraits of prominent Hebrew poets, among them Rachel, Shaul Tchernichovsky, Leah Goldberg and Nathan Alterman. In December 2010, it was announced that the series would feature portraits of Menachem Begin, Yitzhak Rabin, and Rachel and Shmuel Yosef Agnon.[25] When Begin's family opposed the decision, the committee's original proposal was readopted.[26]

On 14 November 2012, the Bank of Israel announced that the new series of banknotes is in the final stages of design. The first of the new banknotes to begin circulation was in the ₪50 denomination on 16 September 2014,[27] followed by the ₪200 note on 23 December 2015.[28] The other two denominations, ₪20 and ₪100, had been expected to be issued in the end of 2017.[29][30][31][32]

Third Series of the New Shekel
Image Value Dimensions Colour Obverse Reverse Date of issue
- ₪20 129 x 71 mm Red Rachel Bluwstein - -
50 New Sheqalim2013 Obverse & Reverse.png ₪50 136 x 71 mm Green Shaul Tchernichovsky; the poem Oh, My Land, My Homeland in microprinting; Citrus tree and its fruits in the background Capital of a Corinthian column; Segment from the poem I Believe 16 September 2014
- ₪100 143 x 71 mm Orange Leah Goldberg - -
200 New Sheqalim2013 Obverse & Reverse.png ₪200 150 x 71 mm Blue Nathan Alterman; the poem Eternal Meeting in microprinting; Fall leaves in the background Moonlit flora; Segment from the poem Morning Song 23 December 2015

Exchange Rates[edit]

ILS per currency, averaged over the year
Currency ISO 4217 Unit 1986 1991 1996 2001 2006 2011 2016
United States dollar USD 1 1.36 2.59 3.36 4.22 4.47 3.46 3.77
Soviet ruble SUR1 1 1.80 4.61
Russian ruble RUB 1 0.62 0.14 0.16 0.12 0.05
Japanese yen JPY 100 0.81 1.87 3.16 3.42 4.00 4.27 3.44
Pound sterling GBP 1 2.07 4.47 5.16 6.10 8.36 5.53 5.15
Deutsche Mark DEM2 1 0.61 1.50 2.22
Euro EUR 1 3.63 5.65 4.91 4.25
Swiss franc CHF 1 0.73 1.78 2.68 2.37 3.67 4.14 3.89
Jordanian dinar JOD 1 4.25 3.34 4.50 5.89 6.44 4.81 5.32
Egyptian pound EGP 1 2.12 0.72 0.94 1.07 0.77 0.57 0.42
Renminbi CNY 1 0.39 0.47 0.39 0.50 0.55 0.55 0.58
Malaysian Ringgit MYR 1 0.56 0.91 1.31 1.10 1.21 1.16 0.95
*1 SUR ceased to exist after 1993, and was replaced by RUB.
*2 DEM ceased to exist after 1999, and was replaced by EUR.


Current ILS exchange rates
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From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY
From XE: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY
From OANDA: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD RUB CNY

See also[edit]

References[edit]

  1. ^ According to Article 4 of the 1994 Paris Protocol The Protocol allows the Palestinian Authority to adopt additional currencies. In the West Bank the Jordanian dinar is widely accepted and in the Gaza Strip the Egyptian pound is often used.
  2. ^ One Palestine Pound, IL: Bank of Israel, archived from the original on April 27, 2006 
  3. ^ One Palestine Pound, IL: Bank of Israel, archived from the original on April 27, 2006 
  4. ^ One Israeli Pound, IL: Bank of Israel [dead link]
  5. ^ First Series of the Pound, IL: Bank Le-Israel [dead link]
  6. ^ "CME to Launch Foreign Exchange Contract on Israeli Shekel" (Press release). Chicago Mercantile Exchange. 6 April 2006. 
  7. ^ Israelis can soon travel the world with shekels in their pockets Haaretz
  8. ^ shekel begins trading on global markets Jerusalem Post
  9. ^ CLS Press Release (26 May 2008). "CLS Bank live with Israeli shekel and Mexican Peso". 
  10. ^ "About the Agora and New Shekel Series". Banknotes and Coins Catalog. Bank of Israel. Retrieved 26 December 2007. 
  11. ^ "5 NEW SHEQALIM". Banknotes and Coins Catalog. The Bank of Israel. Retrieved 26 December 2007. 
  12. ^ "10 NEW SHEQALIM". Banknotes and Coins Catalog. The Bank of Israel. Retrieved 26 December 2007. 
  13. ^ "The new NIS 2 coin" (Press release). The Bank of Israel. 8 July 2007. Retrieved 26 December 2007. 
  14. ^ "Cancellation of the 5 agora coin." (in Hebrew). The Bank of Israel. 1 January 2008. Retrieved 4 September 2016. 
  15. ^ Tomer Avital's report in Calcalist, 21 April 2011 (Hebrew)
  16. ^ Gad Lior's report in Ynet, 21 April 2011
  17. ^ Israeli new shekel conversion
  18. ^ Note that nickel-clad steel 1 new sheqalim coins were issued in 1994 and 1995
  19. ^ Linzmayer, Owen (2012). "Israel". The Banknote Book. San Francisco, CA: www.BanknoteNews.com. 
  20. ^ "The 500 NIS banknote that was never released (Obverse)". 
  21. ^ Motti Basok's report in Haaretz, 17 December 2009 (Hebrew); Keren Marziano's report, Channel Two News, 16 December 2009 (Hebrew)
  22. ^ Press release, Bank of Israel, 23 December 2009
  23. ^ "Third Series of the New Shekel", Currency, Bank of Israel 
  24. ^ "Second Series of the New Shekel", Currency, Bank of Israel .
  25. ^ Press release, Bank of Israel, 19 Dec 2009
  26. ^ Press release, Bank of Israel, 10 March 2011
  27. ^ השטר החדש הושק: "יהי קשה לזייף שטרות" [The new banknote was launched: "It will be difficult to counterfeit banknotes"] (in Hebrew). ynet. 10 September 2014. Retrieved 10 September 2014. 
  28. ^ "Israel's new NIS 200 note enters circulation today". Globes. 23 December 2015. Retrieved 23 December 2015. 
  29. ^ Press release, Bank of Israel: Information on the new series of banknotes 14 November 2012
  30. ^ Press release by the Bank of Israel: Images and descriptions on the new series of Israeli new shekel banknotes Bank of Israel (www.bankisrael.gov.il). 28 April 2013. Retrieved on 2013-05-01.
  31. ^ BoI to issue new NIS 50 note in September Globes (www.globes.co.il). April 27, 2014. Retrieved on 2014-05-19.
  32. ^ Website of the new banknotes in Israel

External links[edit]