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[1]
Inflation	0.5% (2014 est.) 1.5% (2013 est.)
Source	The World Factbook, 2015
Subunit
1⁄100	agora
Symbol	₪
Plural	shekels sheqalim
agora	agoras agorot
Coins	10 agora, NIS ½, 1, 2, 5, 10
Banknotes	NIS 20, 50, 100, 200

The new shekel (Hebrew:  שֶׁקֶל חָדָשׁ , Sheqel H̱adash, abbr. ש״ח; Arabic: شيقل جديد‎, šēqel ǧadīd, abbr. ش.ج; sign: ₪; code: ILS),^[2] informally the shekel and formerly known as the New Israeli Sheqel (NIS),^[3] is the currency of the State of Israel and also used as legal tender in the Palestinian territories of the West Bank and the Gaza Strip. The new shekel is divided into 100 agoras or agorot. It has been in use since 1 January 1986, when it replaced the hyperinflated Israeli shekel (now usually known as the "old shekel") at a ratio of 1000:1.

Name

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.^[2] Previously, the Bank had formally used the Hebrew transcriptions sheqel and sheqalim (from שְׁקָלִים).^[3]

The currency sign 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. The sign, however, does not appear on most keyboards even in Israel and is relatively rarely used. Instead, in English, Hebrew, and Arabic, it is more commonly referenced by its initials: NIS, "Shah" (ש"ח), and "ŠǦ" (ش.ج), respectively.

History

The Israeli pound and its successor, the old shekel, experienced frequent devaluations against the US dollar and other foreign currencies during the 1960s and '70s. This trend culminated in the old shekel suffering 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 NIS 1.

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 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.^[4] 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.^[5][6]

On 26 May 2008, CLS Bank International announced that it would settle payment instructions in new shekels, making the currency fully convertible.^[7]

Coins

In 1985, coins in denominations of 1, 5, and 10 agora and NIS ½ and 1 were introduced.^[8] In 1990, NIS 5 coins were introduced,^[9] followed by NIS 10 coins in 1995.^[10] Production of 1 agora pieces ceased in 1990, too, and they were removed from circulation on 1 April 1991. An NIS 2 coin was introduced on 9 December 2007.^[11] The 5 agora coin, last minted in 2006, was removed from circulation on 1 January 2008.^[12]

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.^[13] 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.^[14]

The coins are minted by the Korea Minting and Security Printing Corporation (KOMSCO).^[15]

Circulation coins of the new shekel are:

• 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 NIS 5, 10, and 50. An NIS 1 note followed on 8 May 1986 and the NIS 20 note issued on 12 April 1988 completed the family.^[17] The NIS 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, NIS 100 notes were introduced, followed by NIS 200 notes in 1991. The NIS 1, 5 and 10 notes were later replaced by coins. A plan to issue an NIS 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.^[18] 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 NIS 500 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 an NIS 500 note was officially abandoned.^[19] The announcement was publicly criticized and, a few days later, the governor of the Bank of Israel announced that the issue be reconsidered.^[20]

The NIS 20 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 legend "60 Years of the State of Israel" in Hebrew in red ink.

• 

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

• 

  Back of the two NIS 20 notes, left one is paper and the right one is made of polypropylene.
  The additional red text on the polypropylene note reads "60 Years of the State of Israel". It was only featured in a limited run close to the noted anniversary and 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, and Rachel and Shmuel Yosef Agnon.^[21] When Begin's family opposed the decision, the committee's original proposal was readopted.^[22]

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 NIS 50 denomination on 16 September 2014,^[23] followed by the NIS 200 note on 23 December 2015.^[24] The other two denominations, NIS 20 and 100, had been expected to be issued in the beginning of 2016.^{[25][26][27][28]}

• 

  NIS 50 bill, new series C.
  

• 

  NIS 200 bill, new series C.

Gallery

• 

  New shekel banknotes and coins

• 

  NIS 20 bill

• 

  old NIS 50 (see new note above)

• 

  NIS 100 bill

• 

  old NIS 200 bill (see new note above)

• 

  NIS ½ coin

• 

  NIS 1 coin

• 

  NIS 2 coin

• 

  NIS 5 coin

• 

  NIS 10 coin

See also

• Bank of Israel
• Economy of Israel
• Paul Kor

References

External links

Wikimedia Commons has media related to Israeli new sheqel.

• 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

Historical currencies of Israel      Year May–August 1948 1948–1960 1960–1980 1980–1985 1985–present Main unit Palestine pound Israeli lira (Old) Shekel New shekel Subunit 1/1000 = mil 1/1000 = pruta 1/100 = agora 1/100 = new agora 1/100 = agora