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Old Israeli shekel

Currency of Israel between 1980 and 1985


Currency of Israel between 1980 and 1985

FieldValue
name(Old) Israeli shekel
local_nameשקל
local_name_langhe
local_name2شيكل or شيقل
local_name_lang2ar
name_abbrIS
image_1Israel 1000 Sheqalim 1983 Obverse & Reverse.jpg
image_title_1IS 1000 banknote (obverse and reverse) issued in 1983
iso_codeILR
issuing_authorityBank of Israel
issuing_authority_website
date_of_introduction24 February 1980
using_countries(1980–1985)
inflation_rate1000% (1984)
unitshekel
subunit_ratio_1
subunit_name_1new agora
symbol[[File:Old Sheqel sign.svg28px]]
pluralshqalim
plural_subunit_1new agorot
used_coins1, 5, 10 new agorot, IS, IS 1, IS 5, IS 10, IS 50, IS 100
used_banknotesIS 1, IS 5, IS 10, IS 50, IS 100, IS 500, IS 1000, IS 5000, IS 10,000
replaced_currencyIsraeli pound
date_of_withdrawal31 December 1985
replaced_by_currencyIsraeli new shekel
obsoleteyes

The old Israeli shekel, then known as the shekel (, formally sheqel, pl. שקלים, Sheqalim; , šēkal, formerly , šēqal until 2014; code ), was the currency of Israel between 24 February 1980 and 31 December 1985. It was replaced by the Israeli new shekel at a ratio of 1,000:1 on 1 January 1986. The old shekel was short-lived due to its hyperinflation. The old shekel was subdivided into 100 new agorot (אגורות חדשות). The shekel sign was used, although it was more commonly denominated as S or IS. As of December 2024, this symbol does not exist in Unicode.

The old Israeli shekel replaced the Israeli pound (IL), which had been used until 24 February 1980, at the rate of IS 1 shekel to IL10.

History

Development of a new currency to be known as the shekel (properly, sheqel) was approved by the Israeli Knesset on 4 June 1969. The governors of the Bank of Israel did not consider the time ripe until November 1977, when studies for its implementation began. Prime Minister Menachem Begin and Minister of Finance Simcha Erlich approved a proposal to redenominate the Israeli pound in May 1978; the proposal called for the currency to be exactly similar except for the removal of a zero from the inflated pound and agorot denominations.

The shekel and new agora became legal tender on 22 February 1980 and went into circulation two days later. The official exchange rate at the time of introduction was US$1 = IS 3.89 = IL38.88. Initial denominations were IS 1, IS 5, IS 10, and IS 50, but over the next five years inflation led to another five: IS 100, IS 500, IS 1,000, IS 5,000, and IS 10,000. Beginning with the IS 500 issue, the size of the notes was standardized (76 x), and the denominations were differentiated by color and design. A transparent section was added to discourage counterfeiting, and elements for the blind were added.

Inflationary pressure did not ease. By the end of 1980, the shekel had already lost about half of its value (US$1 = IS 7.55). In 1981, the value of Israeli currency continued to fall, reaching IS 15.60 per U.S. dollar at the end of the year. At the end of 1982, the exchange rate was IS 33.65 = US$1 and was falling still. The following shows the official exchange rate of one U.S. dollar in specific periods of time at the end of the period:

  • June 1983: IS 47.52
  • December 1983: IS 107.77
  • March 1984: IS 153.26
  • June 1984: IS 236.40
  • September 1984: IS 401.34
  • December 1984: IS 638.71
  • March 1985: IS 858.50
  • June 1985: IS 1262.40 By August 1985, the exchange rate for one U.S. dollar reached IS 1500. The new Israeli shekel replaced the shekel following its hyperinflation and the enactment of the economic stabilization plan of 1985, which brought inflation under control. It became the currency of Israel on 4 September 1985, removing three zeros from the old notes.

The old shekel is no longer in circulation, has been demonetized, and is not exchanged for current legal tender by the Bank of Israel.

Coins

The initial series of coins in 1980 were for the denominations of 1, 5, and 10 new agorot and IS . These preserved the appearance of similar coins under the pound but were worth 10 times as much. The initial runs were struck at foreign mints to preserve the secrecy of the coming currency conversion. The IS 1 coin was introduced in 1981; IS 5 and IS 10 coins in 1982; and and IS 100 coins in 1984.

The 1 and 5 new agorot coins were aluminum; the 10 new agorot and IS , IS 1, and IS 100 coins cupronickel; the IS 5 and IS 50 coins an alloy of copper, aluminum, and nickel; and the IS 10 was cupro-aluminum.

ImageValueTechnical parametersDescriptionDate ofDiameter (mm)Mass (g)CompositionObverseReverseissuewithdrawal
[[File:1-New-Agora-aluminium-hatasham-RJP.jpgcenterx38px]]1 new agora150.6aluminium 97%, magnesium 3%Palm tree, "Israel" in Hebrew and ArabicValue, date
[[File:Israel 5 New Agorot 1980 Obverse & Reverse.gifcenterx45px]]5 new agorot18.50.9The state emblem, "Israel" in Hebrew, Arabic and English
[[File:Israel 10 New Agorot 1980 Obverse & Reverse.gifcenterx40px]]10 new agorot162.1copper 92%, nickel 8%Three pomegranates, the state emblem, "Israel" in Hebrew, Arabic and English
[[File:0.5-Shekel-hatasham-RJP.jpgcenterx50px]]IS203copper 75%, nickel 25%Lion, the state emblem, "Israel" in Hebrew, Arabic and EnglishValue, date, two stars
[[File:1 old Shekel coin.jpgcenterx58px]]IS 1235Cup, "Shekel" in HebrewValue, date, the state emblem, "Israel" in Hebrew, Arabic and English
[[File:Israel 5 Sheqels 1980 Obverse & Reverse.gifcenterx60px]]IS 5246copper 92%, aluminium 6%, nickel 2%Double cornucopia with pendant ribbon (based on image on ancient Judean double-prutah coins issued during the leadership of the High Priest John Hyrcanus); the state emblem, "Israel" in Hebrew, Arabic and EnglishValue, date, two stars
[[File:Israel 10 Sheqels 1982 Obverse & Reverse.gifcenterx65px]]IS 10268copper 75%, aluminium 25%Ancient galley on which Herod Archelaus sailed to Rome and was awarded much of the Judean kingdom and the title of ethnarch (as depicted on ancient Judean double-prutah issued during his reign); the state emblem, "Israel" in Hebrew, Arabic and English
[[File:Israel 50 Sheqels 1984 Obverse & Reverse.gifcenterx70px]]IS 50289copper 92%, aluminium 6%, nickel 2%Replica of a coin, the state emblem, "Israel" in Hebrew, Arabic and English
[[File:Israel 100 Sheqels 1984 Obverse & Reverse.gifcenterx73px]]IS 1002910.8copper 75%, nickel 25%Replica of a coin issued by Antigonus II Mattathias with the seven-branched candelabrum, the state emblem, "Israel" in Hebrew, Arabic and EnglishValue, date
  • Note that all dates on Israeli coins are given in the Hebrew calendar and are written in Hebrew numerals.

Banknotes

The initial series of banknotes in 1980 were for the denominations of IS 1, IS 5, IS 10, and IS 50 and preserved the appearance of the IL10, IL 50, IL 100, and IL 500 notes that they replaced.

Subsequent issues added the denominations of IS 100, IS 500, IS 1,000, IS 5,000, and IS 10,000.

ValueSizeColorObverseReverseImageIssuedWithdrawn
IS 1135×76 mmpurpleMoses Montefiore with Mishkenot Sha'ananim in backgroundJaffa Gate[[File:Israel 1 Shekel 1978 Obverse & Reverse.jpg95px]]24 February 1980
IS 5141×76 mmgreenChaim Weizmann, Weizmann Institute of Science in backgroundDamascus Gate[[File:Israel 5 Shkalim 1978 Obverse & Reverse.jpg99px]]
IS 10147×76 mmblueTheodor Herzl, entrance to Mount Herzl in backgroundZion Gate[[File:Israel 10 Sekel 1980 Obverse & Reverse.jpg103px]]
IS 50153×76 mmIvory-BrownDavid Ben-Gurion at the library in Sde BokerGolden Gate[[File:Israel 50 Shkalim 1978 Obverse & Reverse.jpg107px]]
IS 100159×76 mmOrange-brownZe'ev JabotinskyHerod's Gate[[File:Israel 100 Shekel 1979 Obverse & Reverse.jpg111px]]
IS 500138×76 mmredEdmond James de Rothschild, and farmersBunch of grapes[[File:500 sheqel note.jpg97px]]
IS 1,000greenMaimonidesTiberias where Maimonides is buried; Ancient stone lamp[[File:Israel 1000 Sheqalim 1983 Obverse & Reverse.jpg97px]]
IS 5,000blueLevi EshkolPipe carrying water, symbolizing the national carrier, fields and barren land in background[[File:Israel 5000 Sheqalim 1984 Obverse & Reverse.jpg97px]]
IS 10,000orangeGolda MeirPicture of Golda Meir in the crowd, in front of the Moscow Choral Synagogue, as she arrived in Moscow as Israel's ambassador in 1948[[File:Israel 10000 NIS Bill 1984.jpg97px]]

References

Citations

Bibliography

References

  1. "Currency". Bank of Israel.
  2. "Bank of Israel - Foreign Currency Market - Periodic Daily Exchange rates".
  3. "Currency". Bank of Israel.
  4. "Currency". Bank of Israel.
  5. "Double Prutah - John Hyrcranus I, Judea".
  6. "Herod Archeleus".
  7. "Coins from the Herodian Dynasty".
  8. "2 Prutot - Herod Archelaus, Judea".
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