The Israeli shekel is the official currency of Israel. It is also used in the Palestinian territories of the West Bank and the Gaza Strip. The shekel is subdivided into 100 agorot.
Coins come in denominations of 1, 2, 5, and 10 agorot, as well as 1/2, 1, and 2 shekels. Banknotes come in denominations of 5, 10, 20, 50, 100, and 200 shekels.
The Israeli Shekel replaced the earlier Israeli Pound in 1980. The Bank of Israel issues banknotes and coins on behalf of the government and is responsible for maintaining price stability in Israel.
USD/ILS and EUR/ILS are two popular currency pairs for trading the Israeli Shekel.
The Israeli economy is relatively strong and diverse, with a large hi-tech sector. Tourism is also an important driver of economic activity in Israel. As a result, the ILS tends to be relatively stable compared to other emerging market currencies and currencies in the Middle East. Nonetheless, political tensions in the Middle East can at times have big impacts on the currency’s value.