The currency of Israel is the Israeli New Shekel (ILS), written with the symbol ₪ and divided into 100 agorot. It is issued and managed by the Bank of Israel, and as of 2026 one US dollar trades at roughly 3.6 new shekels. The new shekel is used throughout Israel and circulates widely in the Palestinian territories as well, making it one of the most recognisable currencies in the Middle East.
What the New Shekel Is
The full name is the Israeli New Shekel, often shortened in everyday speech to simply "shekel." Its three-letter ISO code is ILS, while bank screens and price tags display the looping ₪ symbol. Each shekel breaks down into 100 agorot (singular: agora), although low-value agora coins have largely vanished from circulation as prices are rounded to the nearest 10 agorot.
The word "shekel" is ancient. It began as a unit of weight in Mesopotamia more than 4,000 years ago and appears repeatedly in the Hebrew Bible as a measure of silver. By reviving the name in the modern era, Israel deliberately tied its money to one of the oldest recorded units of value in human history.
A Short History of Israel's Money
Israel has used three distinct currencies since gaining independence in 1948. The Palestine pound carried over briefly until 1952, followed by the Israeli lira (also called the pound) from 1952 to 1980. The original shekel arrived in 1980, but it was quickly overwhelmed by an economic crisis.
During the early 1980s, Israel suffered runaway inflation that peaked at roughly 450% per year, eroding the value of savings almost daily. In response, the government launched a sweeping Economic Stabilization Plan in 1985 and introduced the New Israeli Shekel, exchanging 1,000 old shekels for a single new shekel. The reform worked: inflation was brought under control, and the new shekel has remained one of the steadier and stronger currencies in its region ever since. In recent years it has even become freely tradable on global markets, a sign of confidence in Israel's economy.
Banknotes and Coins in Circulation
Israel's current banknote series, rolled out between 2014 and 2017, is unified by a single theme: all four notes honour celebrated Hebrew-language poets. The denominations are:
- ₪20 – blue, featuring Rachel Bluwstein
- ₪50 – green, featuring Shaul Tchernichovsky
- ₪100 – brown/orange, featuring Leah Goldberg
- ₪200 – red, featuring Nathan Alterman
The notes carry raised Braille markings to help visually impaired users and include modern security features such as colour-shifting ink and intricate microprinting. Coins are issued in 10 agorot, ₪1, ₪2, ₪5, and ₪10 values. The ₪10 coin is distinctive for its two-tone design, while the ₪1 and ₪5 coins echo motifs from ancient Jewish coinage, including a lily and a date palm.
Using Money in Israel as a Traveller
Israel is a strongly card-based, cashless-leaning society. Contactless and chip-and-PIN cards are accepted almost everywhere, from supermarkets to taxis, and mobile payment apps are common. Even so, a small amount of cash is handy for open-air markets (such as Jerusalem's Mahane Yehuda or the Old City souks), street food stalls, and tipping. ATMs are plentiful in cities and dispense shekels directly.
A few practical points worth knowing:
- Tipping of around 10–15% is customary in sit-down restaurants and is sometimes added to the bill.
- Many businesses are closed from Friday afternoon through Saturday for Shabbat, so plan cash withdrawals ahead of the weekend.
- Foreign currency exchange is widely available, but rates at independent change shops often beat those at airports and hotels.
- The new shekel is also used alongside the Jordanian dinar and the US dollar in the Palestinian territories.
For more on the country behind the currency, see our israel country guide.
Frequently Asked Questions
What is the symbol for the Israeli shekel?
The new shekel uses the symbol ₪, formed from the first letters of "shekel" and "hadash" (new) in Hebrew. Its international currency code is ILS.
How many agorot are in a shekel?
One new shekel is divided into 100 agorot. In practice, the smallest coin still circulating is the 10-agorot piece, and cash totals are rounded accordingly.
Can I use US dollars or euros in Israel?
Some hotels, tour operators, and shops in tourist areas accept dollars or euros, but you will generally get a poor rate. It is almost always better to pay in shekels by card or to exchange money first.
Is the Israeli shekel a stable currency?
Yes. Since the 1985 stabilization reform that ended hyperinflation, the new shekel has been comparatively strong and stable, and it is now freely traded on international foreign-exchange markets.