Israel’s Currency: The Shekel

Israel introduced a new currency called the “shekel” on February 22, 1980. The name “shekel” is derived from the first book of the Old Testament, where it was used as a measure of mass rather than a monetary standard.

The term “shekel” is not exclusive to the Jews, but has historical significance among all ancient Semitic peoples in the region. It was mentioned in texts from the Sumerians, Phoenicians, Hittites, and the ancient Canaanites. During that time, the shekel represented a unit of measurement for gold, silver, grain, or any other tradable item.

History of Currency in Israel

When Israel was established, the currency used was the “Palestinian pound,” issued by the Anglo-Palestine Bank, with a value equivalent to one pound sterling. In 1952, the “Palestinian pound” was replaced by the “Israeli pound,” also known as the “Israeli lira.”

Some Israelis felt that the pound and lira should have Jewish names, so in 1969, the Knesset (Israeli parliament) passed a law adopting the “shekel” as the official currency. However, it wasn’t until 1978 that the shekel was officially introduced into circulation, following an announcement by Prime Minister Menachem Begin.

On February 22, 1980, the shekel replaced the lira at an exchange rate of 10:1, and on February 24, 1980, it entered into official circulation. A second transformation occurred on September 4, 1985, when the “old” shekel was completely replaced with a new shekel in denominations of 20, 50, 100, and 200. The old currency was exchanged at a ratio of 1000:1, with each shekel being equal to 100 agoras.

This historical account of Israel’s currency reflects an ongoing process of erasing Palestinian associations, aiming to create an atmosphere that disregards others and their history.

Source: RT