ISRAELI NEW SHEKEL Meaning and
Definition
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The Israeli new shekel is the official currency of the State of Israel. It is denoted by the currency code ILS and is often symbolized by the Hebrew letter "ש" (shin). The term "new shekel" distinguishes it from the old Israeli shekel that was in circulation until 1985.
The Israeli new shekel is subdivided into 100 agorot and is issued and regulated by the Bank of Israel. It was introduced in 1986 to replace the old shekel, which had suffered from hyperinflation and had become practically worthless. The new shekel was aimed at stabilizing the Israeli economy and reducing inflation.
The central bank of Israel, the Bank of Israel, is responsible for the issuance and control of the Israeli new shekel. It carefully monitors and manages its value against other major currencies to maintain stability in the economy.
The Israeli new shekel is widely accepted within Israel and is used for all transactions, both cash and electronic, including purchases, services, and government payments. It is also convertible on the international foreign exchange market.
The exchange rate of the Israeli new shekel fluctuates based on various factors, including economic policies, market demand, and global currency fluctuations. It is often influenced by geopolitical events, economic indicators, and monetary policies.
