Israeli new shekel

Israeli new shekel
Yuvalf123 · Use permitted by the BOI, Currency Department · source
Name	New shekel
Local name	שַׁקָּל חָדָשׁ
Iso code	ILS
Introduced	1 January 1986
Subunit name	agora
Subunit ratio	100
Used in	Israel, State of Israel (de facto)
Issuing authority	Bank of Israel

Contents

Israeli new shekel The Israeli new shekel is the legal tender introduced in 1986 to replace the Israeli pound amid a stabilization program tied to efforts by the Bank of Israel, Prime Ministers and finance ministers. It functions within the financial framework influenced by institutions such as the Tel Aviv Stock Exchange, Ministry of Finance, and interacts with international entities including the International Monetary Fund, World Bank, European Union, and central banks like the Federal Reserve, European Central Bank, and Bank of England. The currency circulates alongside Israeli fiscal and monetary legislation, monetary committees, and global trade partners such as United States, European Union member states, China, India, and regional neighbors like Egypt and Jordan.

History

The currency's introduction followed hyperinflation in the early 1980s that engaged policymakers including Shimon Peres, Yitzhak Shamir, Yitzhak Rabin, and finance ministers such as Yoram Aridor and Rothschild Institute-era advisors, and was implemented as part of the 1985 Israeli Economic Stabilization Plan negotiated with economic teams and labor organizations like the Histadrut. Preceding units included the Palestine pound under the British Mandate for Palestine, and the Israeli pound which featured designs influenced by figures like Theodor Herzl and events such as the Declaration of the Establishment of the State of Israel. Currency reform was overseen by officials from the Bank of Israel including governors like Mordecai Kidron and later Mordechai Ish-Shalom, with input from international economists tied to think tanks and universities such as Hebrew University of Jerusalem, Tel Aviv University, Technion, and visiting scholars from Harvard University, London School of Economics, and Columbia University.

Banknotes and coins have depicted statesmen, cultural figures, scientists, and artists associated with institutions including Ben-Gurion University of the Negev, Weizmann Institute of Science, Israel Museum, and personalities such as Chaim Weizmann, Golda Meir, Yitzhak Ben-Zvi, Leah Goldberg, Shaul Tchernichovsky, and scientists linked to Hebrew University and Weizmann Institute. Series issues reference designers, security firms, and mints including the Netherlands Mint and local workshops. Denominations include coins in agorot and shekels and banknotes in multiples widely used in markets like Mahane Yehuda Market and corporate centers such as Tel Aviv Stock Exchange and Azrieli Center. Note security features evolved with anti-counterfeiting technologies developed alongside institutions such as Israeli Security Agency-commissioned labs, private firms, and collaborations with international companies that serve markets in United States, Germany, Japan, and Switzerland.

Monetary policy is administered by the Bank of Israel under legal frameworks passed by the Knesset, with coordination between the Ministry of Finance, finance committees, and oversight by parliamentary bodies including the Knesset Finance Committee. The central bank uses policy instruments such as interest rates, foreign exchange reserves management including reserves in US dollar, euro, British pound sterling, Japanese yen, and regulatory measures affecting banking groups like Bank Hapoalim, Bank Leumi, Israel Discount Bank, and Mizrahi-Tefahot Bank. Policy has responded to shocks from events involving Second Intifada, Gulf War, and regional economic ties with Palestinian territories and bilateral agreements with countries such as United States and European Union. The Bank’s governors, monetary committees, and economists from research centers including Taub Center for Social Policy Studies in Israel shape inflation targeting, foreign exchange interventions, and macroprudential rules.

Circulation practices reflect retail, corporate, and international usage across urban centers like Jerusalem, Tel Aviv, Haifa, Beersheba, and ports such as Port of Haifa and Ashdod Port. The currency’s exchange rate is influenced by trade balances with partners including United States, Germany, China, India, United Kingdom, and regional commerce with Egypt and Jordan, as well as capital flows from diasporic investment tied to communities in United States, Canada, United Kingdom, France, and Argentina. Major financial events affecting the rate include listings on the Tel Aviv Stock Exchange, sovereign credit ratings by agencies such as Moody's Investors Service, Standard & Poor's, and Fitch Ratings, and macro shocks from conflicts like the Yom Kippur War, peace accords such as the Camp David Accords, and international crises involving institutions like the International Monetary Fund.

Commemorative coins and banknotes have marked anniversaries, cultural milestones, and diplomatic events such as accords with Egypt and celebrations tied to the Israel Defense Forces, national anniversaries of Independence Day (Israel), and tributes to figures like David Ben-Gurion, Golda Meir, Isaac Bashevis Singer, A. B. Yehoshua, and scientists affiliated with Weizmann Institute. Special issues are produced for collectors by the Bank of Israel and minting authorities, often marketed through institutions including museums like the Israel Museum, numismatic societies, and auction houses in London, New York, and Geneva.