Israel, a land where ancient history meets modern innovation, offers travelers a unique blend of cultural experiences, from the bustling streets of Tel Aviv to the sacred sites of Jerusalem. As you prepare to explore this diverse country, understanding its currency is essential for a smooth and enjoyable journey.

The Israeli New Shekel (ILS) is the official currency of Israel, introduced on January 1, 1986, to replace the old shekel due to hyperinflation. It is subdivided into 100 smaller units called agorot. The currency operates under a managed floating exchange rate system, allowing its value to be influenced by market forces while the Bank of Israel may intervene to maintain stability. The New Shekel is used not only in Israel but also serves as legal tender in the Palestinian territories of the West Bank and Gaza Strip.

In this guide, we’ll delve into the intricacies of the Israeli New Shekel, its history, and provide practical tips for managing your money during your stay. From the vibrant markets of Jerusalem to the sun-soaked shores of Eilat, this information will ensure you’re well-prepared for your Israeli adventure.

The Israeli New Shekel: An Overview

The official currency of Israel is the Israeli New Shekel (ILS), denoted by the symbol ₪ or simply NIS within Israel. It’s divided into 100 agorot (singular: agora).

History

The Israeli New Shekel was introduced in 1985, replacing the old shekel at a rate of 1,000 old shekels to 1 new shekel. This change was part of economic reforms to address hyperinflation issues from the early 1980s. The name “shekel” has ancient roots, dating back to biblical times when it was a unit of weight used in trade and commerce.

Denominations

Banknotes:

• ₪20, ₪50, ₪100, and ₪200

Coins:

• 10 agorot, 50 agorot, ₪1, ₪2, ₪5, and ₪10

The banknotes feature portraits of prominent Israeli figures and showcase various themes of Israel’s history and heritage on the reverse side.

Currency Usage Guide

1. Cash is Important: While credit cards are widely accepted in urban areas and tourist destinations, cash is still useful in many parts of Israel, especially in markets and small businesses.
2. ATMs: Readily available in cities and towns, offering a convenient way to withdraw local currency.
3. Exchange Rates: The Shekel’s value can fluctuate, so it’s wise to check current rates before your trip.
4. Tipping: Not obligatory but becoming more common in tourist areas. A 10-15% tip in restaurants is appreciated if service charge isn’t included.

Tips for Travelers

1. Exchange Money Wisely: Avoid exchanging at airports or hotels. Banks and authorized exchange offices in city centers often offer better rates.
2. Use Local ATMs: Look for ATMs of major Israeli banks for reliable service and potentially lower fees.
3. Inform Your Bank: Notify your bank of your travel plans to prevent any issues with your cards while abroad.
4. Carry Multiple Payment Options: Have a mix of cash, credit cards, and perhaps a travel money card for flexibility.
5. Small Denominations: Keep smaller bills handy, especially when visiting markets or rural areas.
6. Be Cautious with Large Bills: Some smaller vendors may have trouble breaking large denominations like ₪200 notes.
7. Currency Acceptance: While the US dollar is sometimes accepted, especially in tourist areas, it’s best to use Shekels for all transactions to ensure the best rates.
8. Digital Payments: In larger cities, many establishments accept digital payments, but always have cash as a backup.

By familiarizing yourself with the Israeli New Shekel and following these tips, you’ll be well-prepared to navigate the financial aspects of your trip, leaving you free to fully immerse yourself in Israel’s rich culture, stunning landscapes, and historical wonders. From the ancient streets of Jerusalem to the modern skyline of Tel Aviv, your Israeli journey awaits!

---

Major Banks In Israel

Here are the top ten major banks in Israel, along with brief descriptions of their history and services:

Bank Hapoalim

Founded in 1921, Bank Hapoalim is the largest bank in Israel, playing a pivotal role in the country’s financial landscape. Originally established by the World Zionist Organization and the Jewish Federation of Labor, it has evolved to offer a wide range of banking services, including personal and business banking, investment services, and international operations. The bank operates through a vast network of branches and is known for its significant presence in global financial markets.

Bank Leumi

Established in 1902, Bank Leumi was initially named Anglo-Palestine Bank and aimed to support the Zionist movement. It is one of the oldest banks in Israel and provides comprehensive banking services both domestically and internationally. With a presence in various countries, Bank Leumi focuses on retail banking, corporate finance, and investment services.

Israel Discount Bank

Founded in 1935, Israel Discount Bank has grown to become one of the leading banks in Israel. It offers a broad spectrum of financial services, including consumer banking, corporate banking, and investment solutions. The bank has faced challenges but has successfully navigated them to maintain its position in the market.

Mizrahi-Tefahot Bank

Mizrahi-Tefahot Bank was formed from a merger in 2004 but traces its roots back to 1923. It is recognized as the largest mortgage lender in Israel and provides a variety of banking services such as personal banking, private banking, and corporate finance. The bank operates over 140 branches across the country.

First International Bank of Israel (FIBI)

Established in 1972, FIBI is known for its focus on high-quality customer service and professionalism. It offers a wide range of financial products tailored for both individuals and businesses. FIBI is particularly noted for its English-language documentation services, making it a preferred choice for many expatriates.

Arab Israel Bank

Founded in 1961, Arab Israel Bank serves primarily the Arab population in Israel. It offers various banking products including personal loans, mortgages, and business financing. The bank aims to promote economic development within Arab communities while providing essential banking services.

Mercantile Discount Bank

Established in 1971 as a subsidiary of Israel Discount Bank, Mercantile Discount Bank specializes in serving small to medium-sized enterprises as well as retail customers. It offers a range of banking products including consumer loans, mortgages, and investment services through its network of branches.

Bank of Jerusalem

Founded in 1963, the Bank of Jerusalem provides personal and business banking services with an emphasis on favorable lending conditions. It operates with a transparent banking system aimed at fostering trust among its clients.

U-Bank

A relatively new entrant established under First International Bank’s umbrella, U-Bank focuses on private banking services. It caters primarily to high-net-worth individuals looking for personalized financial solutions.

One Zero Digital Bank

Launched in 2022, One Zero is a digital-only bank that offers modern banking solutions without physical branches. It targets tech-savvy customers who prefer online banking options for their everyday financial needs.

These banks collectively form the backbone of Israel’s financial system, each contributing uniquely to the economy through their diverse range of services and customer bases.

---

Explore Israel Further

• Common Misconceptions – Israel
• Currency Guide For Travelers to Israel
• Essential Travel Tips for Israel
• Israel [Country Info]
• Popular Cities To Visit In Israel
• Popular Foods In Israel
• Popular Museums To Visit In Israel
• Safety Guide For Travelers – Israel
• Top 50 Things To Do In Israel
• Top Historical Places To Visit In Israel