Israeli new shekel

Israeli new shekel
שקל חדש (Hebrew) شيقل جديد (Arabic)
1 new shekel coin
ISO 4217 code	ILS
Central bank	Bank of Israel
Website	bankisrael.gov.il
User(s)	Israel Palestinian Authority
Inflation	0.5% (2014 est.) 1.5% (2013 est.)
Source	The World Factbook, 2015
Subunit
1/100	agora
Symbol	₪
Plural	shekalim or sheqalim
agora	agorot
Coins	10 agorot, ½, 1, 2, 5, 10 new sheqalim
Banknotes	20, 50, 100, 200 new sheqalim

The Israeli new shekel (Hebrew: שֶׁקֶל חָדָשׁ‎ Shekel H̱adash Arabic: شيقل جديد šēqel ǧadīd <phonos file="Shekel Hadash.ogg">listen</phonos>) (sign: ₪; acronym: ש״ח and in English NIS; code: ILS) (pl. sheqalim – שְׁקָלִים‎; ) is the currency of the State of Israel. It is also used in the Palestinian territories of the West Bank and the Gaza Strip. The shekel consists of 100 agorot (אֲגוֹרוֹת‎) (sing. agora, אֲגוֹרָה‎). Denominations made in this currency are marked with the shekel sign, ₪. The Israeli new shekel has been in use since 1 January 1986 when it replaced the old shekel that was in usage between 24 February 1980 and 31 December 1985, at a ratio of 1000:1. The authoritative spelling on Israeli coins and banknotes is new sheqel, pl. new sheqalim, though the spelling shekel is also commonly used.

History

The Israeli lira, followed by the old shekel, experienced frequent devaluations against the US dollar and other foreign currencies, starting in the early 1960s and accelerating from the mid-1970s. This trend culminated in the old shekel suffering from 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 1,000 old sheqalim = 1 new shekel.

Since the economic crisis of the 1980s and the subsequent introduction of the New Shekel, 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 shekel has been a freely convertible currency. Since 7 May 2006, shekel derivative trading has also been available on the Chicago Mercantile Exchange. This makes the 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.

On 26 May 2008, CLS Bank International announced that it would settle payment instructions in Israeli New shekel, making the currency fully convertible.

Coins

In 1985, coins in denominations of 1, 5 and 10 agorot, ½ and 1 new shekel were introduced. In 1990, 5 new sheqalim coins were introduced, followed by 10 new sheqalim in 1995. Production of 1 agora pieces ceased in 1990 too, and they were removed from circulation on 1 April 1991. A 2 new sheqalim coin was introduced on 9 December 2007. The 5 agorot coin, last minted in 2006, was removed from circulation on 1 January 2008.

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. 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.

The coins are minted by the Korea Minting and Security Printing Corporation (KOMSCO).

Circulation coins of the shekel are:

Shekel coin series

Value	Technical parameters				Description			Date of
	Diameter	Thickness	Mass	Composition	Edge	Obverse	Reverse	issue	withdrawal
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
5 agorot	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
10 agorot	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
½ new shekel	26 mm	1.6 mm	6.5 g		Smooth	Lyre, the state emblem	Value, date, "Israel" in Hebrew, Arabic and English		Current
1 new shekel	18 mm	1.8 mm	4 g	Cupronickel 75% copper 25% nickel	Smooth	Lily, "Yehud" in ancient Hebrew, the state emblem	Value, date, "Israel" in Hebrew, Arabic and English	4 September 1985	Current
2 new sheqalim	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
5 new sheqalim	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
10 new sheqalim	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.

• Note that all dates on Israeli coins are given in the Hebrew calendar and are written in Hebrew numerals.

Banknotes

Beginning on 4 September 1985, banknotes were introduced in denominations of 5, 10, and 50 new sheqalim. The 1 new shekel note followed on 8 May 1986, and the 20 new sheqalim note issued on 12 April 1988 completed the family. The 1, 5 and 10 new shekel notes used the same basic designs as the earlier 1,000, 5,000 and 10,000 old shekel notes but with the denominations altered.

In 1986, 100 new shekel notes were introduced, followed by 200 new shekel notes in 1991. The 1, 5 and 10 new shekel notes were later replaced by coins. A plan to issue a 500 shekel 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. However, in February 2008 the Bank of Israel announced that the planning of an entirely new series of banknotes has started, and that the new series, to be issued in 2010, will most probably include a 500 shekel banknote as well. 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 a 500 shekel note was officially abandoned. The announcement was publicly criticized and a few days later, the governor of the Bank of Israel announced that the issue be reconsidered.

Second series of the new shekel

Value	Dimensions	Colour	Obverse	Reverse
20 New Sheqalim	71x 138 mm	Green	Moshe Sharett	Jewish volunteers in World War II; a watchtower, commemorating tower and stockade settlements
50 New Sheqalim		Purple	Shmuel Yosef Agnon	Agnon's notebook, pen and glasses, Jerusalem and the Temple Mount
100 New Sheqalim		Brown	Yitzhak Ben-Zvi	Peki'in Synagogue
200 New Sheqalim		Red	Zalman Shazar	a street in Safed and text from Shazar's essay about Safed

The 20 shekel banknote is the first, as of April 2008, to be 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. 1.8 million of the new banknotes were printed with the writing "60 years [anniversary] of the State of Israel" (in Hebrew), in red ink.

• 

  Face of the two 20 shekel notes, left one is paper and the right one is made of polypropylene.

• 

  Back of the two 20 shekel notes, left one is paper and the right one is made of polypropylene.
  The additional red text on the polypropylene note reads "60 Years to the State of Israel". It was only featured in a limited run, close to the mentioned celebration, it is not present on a majority of notes.

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, Rachel and Shmuel Yosef Agnon. When Begin's family opposed the decision, the committee's original proposal was readopted.

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 NIS denomination on 16 September 2014, followed by the NIS 200 note on 23 December 2015. The other two denominations, NIS 20 and NIS 100, had been expected to be issued in the beginning of 2015.

Third Series of the New shekel
Value	Dimensions	Colour	Obverse	Reverse
20 New Shekels	129 x 71 mm	Red	Rachel Bluwstein
50 New Shekels	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
100 New Shekels	143 x 71 mm	Orange	Leah Goldberg
200 New Shekels	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

• 

  50 NIS bill – new series (series C).
  

• 

  200 NIS bill – new series (series C).

Gallery

• 

  20 new-sheqalim bill

• 

  old 50 new-sheqalim bill (see new note above)

• 

  100 new-sheqalim bill

• 

  old 200 new-sheqalim bill (see new note above)

• 

  0.5 new sheqel coin

• 

  1 new sheqel coin

• 

  2 new sheqalim coin

• 

  5 new sheqalim coin

• 

  10 new sheqalim coin

Abbreviation

In Hebrew the new shekel is usually abbreviated ש"ח (pronounced shaẖ). The symbol for the new shekel, ₪, is a combination of the first Hebrew letters of the words shekel (ש) and ẖadash (ח). According to the standard Hebrew keyboard (SI 1452) it must be typed as AltGr-A (the letter ש appears on the same key in regular Hebrew mode). However, in Windows XP it can be typed on the default Hebrew keyboard by pressing AltGr-4 (while Shift-4 produces the dollar sign), however the sign does not appear on the physical keys of most keyboards that are used in Israel and is rare in day-to-day typing. In Arabic, the currency is usually denoted by the abbreviation ش.ج which is the initials of šikel jadīd, the currency's name in Arabic.

Current ILS exchange rates
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See also

• Bank of Israel
• Economy of Israel
• Paul Kor

External links

• Bank of Israel catalogue of Israeli currency since 1948
• Exchange rates since 1948
• American Israel Numismatic Association
• Current Sheqel Dollar Rate
• Shaar yatzig – Official Rate gadget