Israeli New Shekel

The Israeli new shekel (ISO code: ILS), also known as simply the shekel and formerly known as the new shekel, is the currency of Israel and is also used as a currency in the Palestinian territories of the West Bank and the Gaza Strip. The new shekel is divided into 100 agorot. The new shekel has been in use since 1 January 1986, when it replaced the hyper inflated old shekel at a ratio of 1000:1. The symbol for the new shekel is ₪. The name shekel comes from the ancient unit of weight and currency, the biblical shekel, which was in use throughout the ancient Near East. The shekel was common to Mesopotamia, Phoenicia, and other regions. The new shekel was introduced in 1986, at a rate of 1000 old shekels = 1 new shekel. The move was aimed at combating rampant inflation, which had reached an annual rate of 450%. The old shekel was pegged to the US Dollar at a rate of 1 USD = 0.811 ILS. The new shekel is currently pegged to a basket of currencies, with the US Dollar accounting for 42.5% of the weighting. The euro, pound sterling, and Japanese yen make up the rest of the basket. The new shekel is a fiat currency, with no backing in gold or silver. The Bank of Israel has the sole authority to issue currency, and is also responsible for maintaining price stability. The new shekel is legal tender in Israel and the Palestinian territories. In Israel, it is also accepted as payment in some businesses in the West Bank. As of May 2016, the exchange rate was 3.8 ILS to 1 USD.