Israeli New Shekel (NIS)
The Israeli new shekel (ILS, symbol ₪, abbreviated NIS) is Israel's currency, issued by the Bank of Israel since September 1985 and divided into 100 agorot.
The Israeli new shekel is the currency of Israel, with the ISO code ILS and the symbol ₪, and it is commonly abbreviated NIS. It is issued by the Bank of Israel and divided into 100 agorot. The new shekel was introduced on September 4, 1985, at 1,000 old shekels to one new shekel, as part of the economic stabilization plan that ended Israel's high inflation.
Last updated: October 31, 2026
What Is the Israeli New Shekel?
The new shekel is Israel's official currency and the unit in which Israeli prices, salaries and tax bills are set. Its sign combines the first Hebrew letters of the words shekel and chadash, meaning new. The international code is ILS under ISO 4217, while NIS remains the common abbreviation in Israel and appears on the Bank of Israel's website.
Why Was the New Shekel Created?
The new shekel replaced the old shekel to end hyperinflation. According to the Bank of Israel, the changeover began on September 4, 1985, and was completed on January 1, 1986. Israel had previously used the Israeli pound until 1980 and the old shekel from 1980 to 1985, and both lost value repeatedly against foreign currencies.
| Period | Currency | Conversion |
|---|---|---|
| Until 1980 | Israeli pound | Replaced by the shekel at 10 pounds to 1 shekel in 1980 |
| 1980 to 1985 | Old shekel | Replaced by the new shekel at 1,000 to 1 |
| 1985 to present | New shekel | Issued by the Bank of Israel |
How Is the Shekel Exchange Rate Set?
The shekel is a floating currency whose rate moves with the market, although the path there was gradual. The Bank of Israel describes a 1985 stabilization program that first pegged the shekel to the US dollar, followed by years of exchange rate bands, and a floating rate roughly two decades later. The central bank has also intervened in the foreign exchange market, for example during the global recession, when a Bank of Israel study estimated its purchases moved the shekel rate by an average of close to 7 percent over the period.
Why Does the Shekel Matter to Foreign Investors?
The shekel matters because Israeli companies often earn in dollars and pay costs in shekels, so exchange rate swings affect margins and reported results. Foreign investors in Israeli real estate, bonds or TASE-listed shares also carry currency risk between the shekel and their home currency.
Frequently Asked Questions
What is the currency code for the Israeli shekel?
The international code is ILS. Within Israel the abbreviation NIS and the symbol ₪ are common.
How many agorot are in a shekel?
One shekel equals 100 agorot.
When was the new shekel introduced?
The Bank of Israel dates its introduction to September 4, 1985, with the changeover completed on January 1, 1986.
Who issues the Israeli shekel?
The Bank of Israel, Israel's central bank, issues the shekel.