Israeli New Shekel

Overview

Economy

• Israel is a member of OECD, Various bilateral and multilateral agreements.
• Main industries include: High-technology products, Wood and paper products, Potash and phosphates, Food, Beverages, Tobacco, Caustic soda, Cement, Pharmaceuticals, Construction, Metal products, Chemical products, Plastics, Cut diamonds, Textiles, Footwear.
• Israel is part of the World Trade Organization.
• Imports are raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods.
• Major exports include machinery, software, cut diamonds, agricultural products, chemicals, textiles and apparel.
• GDP: $528.7 billion (2023 est.).
• GDP per capita: $55,533 (2023 est.).
• Unemployment rate: 3.4% (2023 est.).
• Inflation rate: 4.2% (2023 est.).
• Main trading partners: United States, China, Germany, Turkey, India, Italy.
• Trade agreements: EU Association Agreement, US-Israel FTA, Various bilateral agreements.

History

• Previous currencies used: Israeli pound, Old Israeli shekel, Palestinian pound (Mandate period).
• The new shekel was introduced in 1985, replacing the old shekel at 1000:1 as part of the Economic Stabilization Plan that successfully ended hyperinflation.
• 1980: Old shekel introduced, replacing Israeli pound
• 1985: New shekel introduced (1000:1) with stabilization plan
• 1989: Exchange rate liberalization
• 2003: Inflation targeting adopted
• 2008: Global financial crisis weathered well
• 2020: COVID-19 pandemic economic response
• Exchange rate peg: Basket peg (1985-1989).
• Exchange rate peg: Free floating (1989-present).

General Information

• ISO 4217 Code: ILS
• Symbols: ILS/₪
• Currency Subunits: 100 agorot
• Central Bank: Bank of Israel
• Monetary Policy: Inflation targeting with 1-3% range. Free-floating exchange rate with focus on price stability and supporting high-tech economy.
• Bills: 20 ILS, 50 ILS, 100 ILS, 200 ILS
• Coins: 10 agorot, ½ shekel, 1 shekel, 2 shekels, 5 shekels, 10 shekels
• USD Exchange Rate: Variable (approximately 3.7 ILS per USD)
• Pegged To: None (Floating)
• Capital: Jerusalem
• Population: 9,557,500 (2023 est.)
• Area: 20,770 km²
• Languages: Hebrew (official), Arabic (official), English, Russian
• Time Zones: UTC+2 (Israel Standard Time), UTC+3 (Israel Daylight Time)
• Government Type: Parliamentary democracy
• Head of Government: President (head of state), Prime Minister (head of government)
• Independence: May 14, 1948 (from British Mandate)
• Ethnic Groups: Jewish 73.5%, Arab 21.1%, Other 5.4%
• Religions: Jewish 73.5%, Muslim 18.1%, Christian 1.9%, Druze 1.6%, Other 4.8%
• Literacy Rate: 97.8% (2011 est.)
• Transport: Ben Gurion Airport, modern highway system, rail networks, Mediterranean ports
• Communications: Advanced telecommunications, 84% internet penetration, comprehensive 5G networks
• Energy: Natural gas 63%, Coal 19%, Solar 6%, Oil 6%, Other renewables 6%
• Countries Using This Currency: Israel
• Data Sources: Central Bank: Bank of Israel (boi.org.il), Economic Data: Israel Central Bureau of Statistics, World Bank, IMF, Trade Data: Israel Tax Authority, Demographic Data: Israel Central Bureau of Statistics, Geographic Data: Israel Meteorological Service, Historical Data: Bank of Israel archives
• Last Updated: 2025