Israeli New Shekel (ILS)

Basic Concepts of the Israeli New Shekel

The Israeli New Shekel (NIS) is the official currency of Israel, with the international standardized code ILS and the currency symbol ₪. It is issued and managed by the Bank of Israel and is freely convertible to major currencies around the world using a floating exchange rate system. NIS means "New Currency" to distinguish it from the old shekels that existed before the 1980s.

Countries of Use

The Israeli NIS is circulated primarily within Israel, where it is legal tender for all day-to-day transactions and economic activities. Although the currency is accepted in parts of Palestine, Israel is the core area of use and does not involve official adoption by other countries or regions.

Units and denominations

The new Israeli shekel is divided into a primary unit, the shekel, and a secondary unit, the argorot, with one shekel equaling 100 argorots. Bill denominations include 20, 50, 100, and 200 shekels, while coin denominations include 1, 2, 5, and 10 shekels, as well as 10 Agorot coins, covering a wide range of needs from small change to large payments.

Historical background

The New Israeli Shekel was introduced in 1985 to replace the old shekel, which had been devalued by hyperinflation, as a key part of Israel's economic stabilization program. Through monetary reform, Israel succeeded in curbing hyperinflation and gradually established a stable financial system. Since its inception, the new shekel has become one of the more stable currencies in the Middle East.