What is the Currency in Israel?
The official currency of Israel is called the Israeli new shekel, commonly abbreviated as ILS. In Hebrew, it is known as שקל חדש (shekel chadash), often shortened to ש”ח (pronounced “shekh”). The plural form is shekels in English and שקלים (shkalim) in Hebrew. This currency is widely used throughout Israel and the Palestinian territories.
A Brief History of the Israeli Shekel
Israel’s currency has evolved over time. When the State of Israel was established in 1948, the currency used was the Israeli pound, which replaced the Palestine pound. In 1980, the shekel was introduced to replace the pound. However, due to high inflation, the government replaced the original shekel with the new shekel in 1985. This currency, the new Israeli shekel (NIS), has remained stable and is the official legal tender today.
Understanding the Shekel: Coins and Banknotes
The Israeli new shekel is divided into 100 smaller units called agorot (singular: agora). Here is a breakdown of the denominations you will encounter:
Coins
- 10 agorot
- ½ shekel (50 agorot)
- 1 shekel
- 2 shekels
- 5 shekels
- 10 shekels
Banknotes
- 20 shekels
- 50 shekels
- 100 shekels
- 200 shekels
Currency Symbols and Usage
The shekel has its own symbol: ₪. When in Israel, you may see prices listed with the symbol “₪” or the abbreviation “ש”ח”. For example, a price tag might read “₪50” or “50 ש”ח”. It’s useful for Hebrew learners to recognize these symbols and abbreviations, as they appear on menus, receipts, and signs throughout the country.
Exchanging Money and Using Currency in Israel
Foreign currency can be exchanged at banks, currency exchange offices, and hotels. ATMs are widely available and typically offer instructions in several languages, including Hebrew and English. Credit and debit cards are accepted in most urban areas and tourist destinations, but it’s always a good idea to carry some cash for smaller purchases or when visiting rural areas and markets.
Helpful Hebrew Vocabulary Related to Currency
- שקל (shekel) – shekel
- שקלים (shkalim) – shekels (plural)
- אגורה (agora) – agora (cent)
- כסף (kesef) – money
- עודף (odef) – change
- מחיר (mechir) – price
- קבלה (kabbalah) – receipt
Learning these words will be helpful in daily transactions and will boost your confidence in using Hebrew in real-life situations.
Why Learn About Israeli Currency?
Understanding the currency is not just practical; it’s also an excellent way to enhance your language learning journey. Discussing money, prices, and transactions provides real-life context for using Hebrew vocabulary and phrases. Whether you’re studying with Talkpal or traveling in Israel, being familiar with the shekel makes navigating shops, restaurants, and public transportation much easier.
Conclusion
The currency in Israel is the Israeli new shekel (ILS), known as שקל חדש (shekel chadash) in Hebrew. Familiarizing yourself with its denominations, symbols, and related vocabulary will enrich your experience in Israel and make your Hebrew studies more practical. For more tips on learning Hebrew and preparing for real-world situations, explore the resources available on the Talkpal blog and take your language skills to the next level.
