The Israeli New Shekel (ILS) is the official currency of Israel. It plays a vital role in the daily lives of the people living in this Middle Eastern country. 

Israel’s economy is diverse, and it includes technology, agriculture, and tourism. 

Knowing the Israeli New Shekel helps people comprehend the country’s economy and how it interacts with the global market. 

Read on to explore the history, structure, and value of the Israeli New Shekel, as well as its significance in both local and international contexts.

What is the Israeli New Shekel (ILS)?

The Israeli New Shekel (ILS) is the official currency of Israel. The shekel is further divided into agorots, with 100 agorots making one shekel. 

The symbol for the new shekel is ₪, and it serves as a convenient medium for trading goods and services. 

The Bank of Israel manages and issues the New Shekel. This currency plays a vital role in the country’s economy, supporting everyday transactions, international trade, and investments.

History of the Israeli New Shekel

In 1985, Israel introduced the New Shekel, replacing the older shekel at a rate of 1 New Shekel for 1,000 old shekels.

Before the New Shekel, Israel used the Pound until 1980, when inflation forced the introduction of the original Shekel. 

The New Shekel aimed to stabilize the economy and reduce the effects of hyperinflation. 

Over the years, the New Shekel has gained a reputation as a stable currency in the region.

Subdivisions and Denominations

The Israeli New Shekel is subdivided into 100 agorot. Coins come in several denominations, including 10 agorot, 50 agorot, ₪1, ₪2, ₪5, and ₪10. 

The banknotes are available in ₪20, ₪50, ₪100, and ₪200 denominations. 

Each banknote features unique designs that represent important figures and symbols from Israel’s history and culture.

Exchange Rate and Value

The exchange rate of the Israeli New Shekel can change daily based on market conditions. 

• 1 USD = ₪3.67
• 1 EUR = ₪4.00
• 1 GBP = ₪4.60
• 1 NGN (Nigerian Naira) = ₪0.00222
• 1 AED (United Arab Emirates Dirham) = ₪1.03

Economy and Challenges

Israel has a diverse and advanced economy, heavily influenced by technology and innovation. 

Key sectors include high-tech industries, agriculture, and tourism. Israel is known for its startups and technological advancements, which contribute significantly to its GDP.

However, the Israeli economy faces several challenges. Political instability in the region can affect investor confidence and currency stability. 

The cost of living can be high, and inflation can impact the value of the New Shekel.

Conclusion

The Israeli New Shekel (ILS) serves as the official currency of Israel, playing a crucial role in everyday life and the economy. 

Introduced in 1985, the New Shekel replaced the older currency to stabilize the economy. The currency is divided into agorot, with various denominations in both coins and banknotes. 

The New Shekel enjoys a reputation for stability, but it faces challenges due to regional politics and economic fluctuations. 

As Israel continues to thrive, the New Shekel remains an important part of its financial system, reflecting the country’s growth and development.