Currency used in Israel
Israel, with its rich history, diverse culture, and modern innovation, is a fascinating destination for travelers and investors alike. Whether you’re planning a visit to the Holy Land or considering financial transactions involving Israel, understanding the country’s currency is crucial. In this comprehensive guide, we’ll explore the currency used in Israel, its history, denominations, exchange rates, and practical tips for handling money in the country.
1. The Israeli New Shekel (ILS): An Overview
The official currency of Israel is the Israeli New Shekel, abbreviated as ILS. The New Shekel is the legal tender used in Israel for all financial transactions, including purchases, payments, and investments. It is issued and regulated by the Bank of Israel, the country’s central bank, which oversees monetary policy, controls inflation, and maintains the stability of the currency.
2. History of the Israeli New Shekel
The Israeli New Shekel was introduced in 1985, replacing the old Israeli Shekel (ILS) as part of an economic stabilization plan. The New Shekel was revalued at a ratio of 1,000 old shekels to 1 new shekel to combat hyperinflation and restore confidence in the economy. Since then, the New Shekel has become the primary currency used in Israel, known for its stability and reliability.
3. Denominations of the Israeli New Shekel
The Israeli New Shekel is available in various denominations, including banknotes and coins:
Banknotes: The most common banknotes in circulation are 20, 50, 100, and 200 new shekel notes.
Coins: Coins are available in denominations of 10, 5, 2, and 1 new shekels, as well as 50 and 10 agorot (1 shekel is divided into 100 agorot).
4. Exchange Rates and Currency Conversion
The exchange rate of the Israeli New Shekel fluctuates based on factors such as economic conditions, inflation rates, and geopolitical developments. It’s essential to check the latest exchange rates before converting your currency into Israeli New Shekels. Major banks, exchange offices, and ATMs are widely available throughout Israel for currency exchange.
5. Practical Tips for Handling Money in Israel
Carry Cash: While credit and debit cards are widely accepted in major cities and tourist areas, it’s advisable to carry some cash for smaller purchases, taxis, and transactions in rural areas.
Use ATMs Wisely: ATMs are prevalent in Israel, especially in urban centers and tourist areas. However, be aware of potential scams and fraudulent devices. Use ATMs located in secure, well-lit areas and avoid using standalone machines in secluded locations.
Bargaining and Negotiating: Bargaining is not common in Israel, except in markets and souks, where you may have some room for negotiation, especially when purchasing goods such as souvenirs, textiles, and handicrafts.
Be Aware of Counterfeits: Familiarize yourself with the security features of Israeli New Shekel banknotes to avoid counterfeit currency. Look for watermarks, security threads, and holographic elements on banknotes.
Keep Small Change: Keep small denominations of Israeli New Shekels and agorot for tipping, public transportation, and other everyday expenses. Best Israel Tours
Conclusion: Navigating the Israeli New Shekel
Understanding the Israeli New Shekel and how to handle money in Israel is essential for travelers, expatriates, and businesses operating in the country. With its stability, widespread acceptance, and convenience, the Israeli New Shekel offers a seamless financial experience for those navigating the Israeli economy.
By familiarizing yourself with the Israeli New Shekel, exchanging currency wisely, and adhering to practical tips for handling money, you can navigate the Israeli financial landscape with confidence and ease. So whether you’re exploring the historic streets of Jerusalem, floating in the Dead Sea, or experiencing the vibrant nightlife of Tel Aviv, the Israeli New Shekel will be your trusted companion along the way.