What is Israeli New Sheqel (ILS)?

Israeli New Sheqel (ILS)

The Israeli New Sheqel (ILS) serves as the primary currency in Israel and is significant for both domestic and international economic activities. The term 'sheqel' has historical roots, dating back to ancient times when it was used in various forms across the region. The current version, the New Sheqel, was introduced in 1985 as part of a monetary reform to stabilize the economy and curb hyperinflation.

The ILS is subdivided into 100 agorot, which allows for smaller transactions and facilitates everyday purchases. Coins are available in denominations of 10 agorot, 0.1, 0.5, 1, 2, 5, and 10 sheqels, while banknotes come in 20, 50, 100, and 200 sheqel denominations. This variety in denominations makes it convenient for citizens and visitors alike to conduct transactions.

The Bank of Israel is responsible for issuing and regulating the currency, ensuring its stability and integrity. The design of the banknotes features prominent Israeli figures and landmarks, reflecting the nation's cultural heritage. The ILS is traded on foreign exchange markets and is subject to fluctuations based on economic indicators, geopolitical events, and market sentiment.

In addition to its use within Israel, the Israeli New Sheqel is also accepted in certain areas of the Palestinian territories, further expanding its relevance in the region. The ILS is often compared to other currencies in the Middle East, with its value influenced by factors such as trade balances, inflation rates, and interest rates set by the Bank of Israel.

As a relatively stable currency in a historically volatile region, the ILS has gained recognition among investors and traders. Its performance can be indicative of the overall economic health of Israel, making it an important currency for those engaged in international business with the country.