The Israeli New Shekel (ILS), also known as the Israeli Shekel, is the official currency of Israel, a country located in the Middle East.
The New Shekel was introduced on January 1, 1986, replacing the old Israeli Shekel at a ratio of 1,000 old shekels to 1 new shekel, as part of a currency reform to combat hyperinflation.
The Bank of Israel is responsible for issuing and managing the Israeli New Shekel.
Exchange Rate System:
The Israeli New Shekel operates under a managed floating exchange rate system, where its value relative to other currencies is determined by market forces, such as supply and demand.
The Bank of Israel may intervene in the foreign exchange market if necessary to maintain stability or prevent excessive fluctuations.
This system allows the Israeli New Shekel to respond to external shocks and changes in global market conditions while maintaining a certain level of stability.
Subdivisions and Denominations
The Israeli New Shekel is subdivided into 100 smaller units called agorot.
Coins are issued in denominations of 10 agorot, as well as ½, 1, 2, 5, and 10 new shekels.
Banknotes are available in denominations of 20, 50, 100, and 200 new shekels.
Economy and Challenges
Israel’s economy is diverse and advanced, with a strong focus on technology, research, and development. Key sectors include high-tech industries, telecommunications, agriculture, and services.
The country is known for its robust startup ecosystem and innovative research in fields such as biotechnology, renewable energy, and cybersecurity.
However, Israel faces several economic challenges, including regional geopolitical tensions, income inequality, and a high cost of living.
The government has been working on policies to promote economic growth, diversify the economy, and address social issues such as housing affordability and social welfare.
Summary
In summary, the Israeli New Shekel is the official currency of Israel and is managed by the Bank of Israel.
The currency operates under a managed floating exchange rate system, with its value determined by market forces and potential intervention from the Bank.
The Israeli New Shekel is subdivided into agorot and is issued in various banknote and coin denominations. Israel’s economy is diverse and advanced, but the country faces challenges related to regional geopolitical tensions, income inequality, and a high cost of living.