Old Israeli shekel

(Old) Israeli shekel
IS
IS 1000 banknote (obverse and reverse) issued in 1983
ISO 4217
CodeILR
Unit
Unitshekel
Pluralshqalim
Symbol‎
Denominations
Subunit
 1⁄100new agora
Plural
 new agoranew agorot
BanknotesIS 1, IS 5, IS 10, IS 50, IS 100, IS 500, IS 1000, IS 5000, IS 10,000
Coins1, 5, 10 new agorot, IS1⁄2, IS 1, IS 5, IS 10, IS 50, IS 100
Demographics
Date of introduction24 February 1980
ReplacedIsraeli pound
Date of withdrawal31 December 1985
Replaced byIsraeli new shekel
User(s) Israel (1980–1985)
Issuance
Central bankBank of Israel
 Websitewww.boi.org.il
Valuation
Inflation1000% (1984)
This infobox shows the latest status before this currency was rendered obsolete.

The old Israeli shekel, then known as the shekel (Hebrew: שקל, formally sheqel, pl. שקלים, Sheqalim; Arabic: شيكل, šēkal, formerly Arabic: شيقل, šēqal until 2014; code ILR), was the currency of the State 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 although it was more commonly denominated as S or IS.

The Israeli old 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.[1]

The shekel and new agora became legal tender on 22 February 1980 and went into circulation two days later. The official exchange rate at time of introduction was US$1 = IS 3.89 = IL38.88.[2] 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.[1] New coin and bill designs were selected through competitions among graphic designers.[3] Beginning with the IS 500 issue, the size of the notes was standardized (76 mm × 138 mm or 3 in × 5 in) and the denominations differentiated by color and design. A transparent part was added to discourage counterfeiting and elements for the blind were added.[1]

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.[4]

The old shekel is no longer in circulation, has been demonetized, and is not exchangeable to 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 1⁄2. These preserved the appearance of the similar coins under the pound but were worth 10 times as much. The initial runs were struck at foreign mints in order to preserve the secrecy of the coming currency conversion. IS 1 coins were introduced in 1981; IS 5 and IS 10 coins in 1982; and IS 50 and IS 100 coins in 1984.[3]

The 1 and 5 new agorot coins were aluminum; the 10 new agorot and IS 1⁄2, 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 cupro-aluminum.[3]

Old shekel coins
Image Value Technical parameters Description Date of
Diameter (mm) Mass (g) Composition Obverse Reverse issue withdrawal
1 new agora 15 0.6 aluminium 97%, magnesium 3% Palm tree, "Israel" in Hebrew and Arabic Value, date February 24, 1980
 April 9, 1986
5 new agorot 18.5 0.9 The state emblem, "Israel" in Hebrew, Arabic and English
10 new agorot 16 2.1 copper 92%, nickel 8% Three pomegranates, the state emblem, "Israel" in Hebrew, Arabic and English
IS1⁄2 20 3 copper 75%, nickel 25% Lion, the state emblem, "Israel" in Hebrew, Arabic and English Value, date, two stars
IS 1 23 5 Cup, "Shekel" in Hebrew Value, date, the state emblem, "Israel" in Hebrew, Arabic and English January 22, 1981
 IS 5 24 6 copper 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);[5] the state emblem, "Israel" in Hebrew, Arabic and English Value, date, two stars October 9, 1981
 IS 10 26 8 copper 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[6] (as depicted on ancient Judean double-prutah issued during his reign);[7][8] the state emblem, "Israel" in Hebrew, Arabic and English February 25, 1982
IS 50 28 9 copper 92%, aluminium 6%, nickel 2% Replica of a coin, the state emblem, "Israel" in Hebrew, Arabic and English August 3, 1984
IS 100 29 10.8 copper 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 English Value, date February 5, 1984
These images are to scale at 2.5 pixels per millimetre. For table standards, see the coin specification table.

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, IL50, IL100 and IL500 notes which they replaced.[1]

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

Value Size Color Obverse Reverse Image Issued Withdrawn
IS 1 135×76 mm purple Moses Montefiore with Mishkenot Sha'ananim in background Jaffa Gate 24 February 1980 September 4, 1986
IS 5 141×76 mm green Chaim Weizmann, Weizmann Institute of Science in background Damascus Gate
IS 10 147×76 mm blue Theodor Herzl, entrance to Mount Herzl in background Zion Gate
IS 50 153×76 mm Ivory-Brown David Ben-Gurion at the library in Sde Boker Golden Gate
IS 100 159×76 mm Orange-brown Ze'ev Jabotinsky Herod's Gate December 11, 1980
IS 500 138×76 mm red Edmond James de Rothschild, and farmers Bunch of grapes December 1, 1982
IS 1,000 green Maimonides Tiberias where Maimonides is buried; Ancient stone lamp November 17, 1983
IS 5,000 blue Levi Eshkol Pipe carrying water, symbolizing the national carrier, fields and barren land in background August 9, 1984
IS 10,000 orange Golda Meir Picture of Golda Meir in the crowd, in front of the Moscow Choral Synagogue, as she arrived in Moscow as Israel's ambassador in 1948 November 27, 1984
These images are to scale at 0.7 pixel per millimetre. For table standards, see the banknote specification table.

See also

References

Citations

  1. ^ a b c d e "Past Notes &Coin Series: Sheqel Series", Currency, Bank of Israel.
  2. ^ "Bank of Israel - Foreign Currency Market - Periodic Daily Exchange rates". www.boi.org.il. Retrieved 2022-01-10.
  3. ^ a b c "Past Notes &Coin Series: New Agora and Sheqel Series", Currency, Bank of Israel.
  4. ^ "Past Notes &Coin Series: First Series of the New Sheqel", Currency, Bank of Israel.
  5. ^ "Double Prutah - John Hyrcranus I, Judea".
  6. ^ https://www.forumancientcoins.com/catalog/roman-and-greek-coins.asp?param=11342q00.jpg&vpar=927&zpg=116786 [bare URL]
  7. ^ "Coins from the Herodian Dynasty".
  8. ^ "2 Prutot - Herod Archelaus, Judea".

Bibliography

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