Editing Israeli new shekel (section)

== History ==
{{main|Shekel}}
The origin of the name "[[shekel]]" ({{lang|he|שֶׁקֶל|rtl=yes}}) is from the ancient Biblical currency by the same name. An early Biblical reference is Abraham being reported to pay "four hundred shekels of silver" to [[Ephron the Hittite]] for the [[Cave of the Patriarchs]] in Hebron ({{bibleverse|Genesis|23:15-16}}). Shekel is any of several ancient units of weight or of currency in ancient Israel, from the Hebrew root {{lang|he|ש-ק-ל}} (š-q-l) meaning 'weigh' ({{lang|he|שָׁקַל}} {{lang|he-Latn|šaqal}} 'to weigh', {{lang|he|שֶׁקֶל}} {{lang|he-Latn|šeqel}} 'a standard weight'), common with other Semitic languages like Akkadian (resp. {{lang|akk-Latn|šaqālu}} and {{lang|akk-Latn|šiqlu}})<ref>{{Cite web|url=http://www.assyrianlanguages.org/akkadian/dosearch.php?searchkey=469&language=id|title=Search Entry|website=www.assyrianlanguages.org}}</ref> and Aramaic (resp. {{lang|arc|תְּקַל}} {{lang|arc-Latn|teqal}} and {{lang|arc|תִּקְלָא}} {{lang|arc-Latn|tiqla}}).<ref>{{Cite web |url=https://www.sefaria.org.il/Jastrow,_תִּקְלָא?lang=he |title=Jastrow, תִּקְלָא }}</ref> Initially, it may have referred to a weight of [[barley]]. In [[ancient Israel]], the shekel was known to be about 180&nbsp;[[grain (unit)|grains]] (11&nbsp;[[gram]]s or 0.35&nbsp;[[troy ounce]]s).

From the formation of the modern [[State of Israel]] on 14 May 1948 through 1952 banknotes continued to be issued by the [[Anglo-Palestine Bank]] as the [[Palestine pound]] which was pegged at £P1 = £1&nbsp;[[pound sterling|sterling]].<ref name="auto">{{citation |publisher=[[Bank of Israel]] |place=IL |title=One Palestine Pound |url=http://www.bankisrael.gov.il/catal/eng/bill_all_eng.htm?series_num=1&series_name=Anglo%20Palestine%20Bank%20Series&pg_name=p002&pg_kot=ONE%20PALESTINE%20POUND |url-status=dead |archive-url=https://web.archive.org/web/20060427085208/http://www.bankisrael.gov.il/catal/eng/bill_all_eng.htm?series_num=1&series_name=Anglo%20Palestine%20Bank%20Series&pg_name=p002&pg_kot=ONE%20PALESTINE%20POUND |archive-date=27 April 2006 |df=dmy }}</ref> In 1952, the Anglo-Palestine Bank changed its name to {{lang|he-Latn|[[Bank Leumi|Bank Leumi Le-Yisrael]]}} ({{langx|he|בנק לאומי לישראל}}, 'National Bank of Israel') and the currency name became the [[Israeli pound]].<ref>{{citation |publisher=[[Bank of Israel]] |place=IL |title=One Israeli Pound |url=http://www.bankisrael.gov.il/catal/eng/bill_all_eng.htm?series_num=2&series_name=Bank%20Leumi%20Le-Israel%20Series&pg_name=p007&pg_kot=ONE%20ISRAELI%20POUND |archive-url=https://web.archive.org/web/20070927000546/http://www.bankisrael.gov.il/catal/eng/bill_all_eng.htm?series_num=2&series_name=Bank%20Leumi%20Le-Israel%20Series&pg_name=p007&pg_kot=ONE%20ISRAELI%20POUND |url-status=dead |archive-date=27 September 2007 }}</ref>

=== Israeli pound (1952–1980) ===
{{Main|Israeli pound}}
The Israeli pound ({{lang|he|לירה ישראלית|rtl=yes}}, {{lang|he-Latn|lira yisraelit}}) was the currency of the State of [[Israel]] from June 1952 until it was replaced with the [[Old Israeli shekel|shekel]] on 24 February 1980. From 1955, after the [[Bank of Israel]] was established and took over the duty of issuing [[banknote]]s, only the Hebrew name was used, along with the symbol "IL".<ref>{{citation |publisher=[[Bank of Israel]] |place=IL |title=First Series of the Pound |url=http://www.bankisrael.gov.il/catal/eng/bill_all_eng.htm?series_num=4&series_name=First%20Series%20of%20the%20Pound&pg_name=p012&pg_kot=ONE%20ISRAELI%20POUND |archive-url=https://web.archive.org/web/20070927002117/http://www.bankisrael.gov.il/catal/eng/bill_all_eng.htm?series_num=4&series_name=First%20Series%20of%20the%20Pound&pg_name=p012&pg_kot=ONE%20ISRAELI%20POUND |url-status=dead |archive-date=27 September 2007 }}</ref> The pegging to [[Pound sterling|sterling]] was abandoned on 1 January 1954, and in 1960, the sub-division of the Israeli pound was changed from 1,000 {{lang|he-Latn|[[Israeli pruta|prutot]]}} to 100 {{lang|he-Latn|[[Israeli agora|agorot]]}}.

Because {{lang|he-Latn|lira}} ({{langx|he|לִירָה}}) was a loanword from [[Latin language|Latin]], a debate emerged in the 1960s over the name of the Israeli currency due to its non-Hebrew origins. This resulted in a law ordering the Minister of Finance to change the name from {{lang|he-Latn|lira}} to the Hebrew name {{lang|he-Latn|[[shekel]]}} ({{langx|he|שקל}}). The law allowed the minister to decide on the date for the change. The law came into effect in February 1980, when the Israeli government introduced the 'Israeli shekel' (now called [[old Israeli shekel]]), at a rate of IL10 = IS&nbsp;1.

=== Shekel (1980–1985) ===
{{Main|Old Israeli shekel}}
The original shekel, now known as the ''old shekel'', was the currency of the State of Israel between 24 February 1980 and 31 December 1985. Both it and its predecessor, the Israeli pound, experienced frequent [[devaluation]]s against foreign currencies during the 1960s and 1970s. This trend culminated in the old shekel experiencing [[hyperinflation]] in the early 1980s. After inflation was contained as a result of the [[1985 Israel Economic Stabilization Plan|1985 Economic Stabilization Plan]], the new shekel was introduced, [[redenomination|replacing]] the old shekel on 1 January 1986 at a rate of {{nowrap|IS 1,000}} to {{nowrap|₪1.}}

=== New shekel (1985–present) ===
{{multiple image
 | align = right | perrow = 3 | total_width = 300
 | image1 = Israel 1000 Sheqalim 1983 Obverse & Reverse.jpg
 | image2 = Israel 5000 Sheqalim 1984 Obverse & Reverse.jpg
 | image3 = Israel 10000 NIS Bill 1984.jpg
 | image4 = Israel 1 Sheqel 1986 Obverse & Reverse.jpg
 | image5 = Israel 5 New Sheqalim 1987 Obverse & Reverse.jpg
 | image6 = Israel 10 New Sekel 1985 Obverse & Reverse.jpg
 | footer = Removing three zeros: The smallest of the new banknotes (below) correspond to the biggest of the old (above).
}}
Since the economic crisis of the 1980s and the subsequent introduction of the new shekel in 1985, the [[Bank of Israel]] and the [[government of Israel]] have maintained much more careful and conservative fiscal and monetary policies, and have gradually introduced various market-based economic reforms. In addition, the signing of free trade agreements helped the Israeli economy become more competitive, while heavy investment in its industrial and scientific base allowed the country to take advantage of opportunities associated with the rise of the global [[knowledge economy]], thus greatly increasing exports and opening new markets for its products and services. As a result of these factors, inflation has been relatively low and the country now maintains a positive [[balance of payments]], with a [[Current account (balance of payments)|current account]] surplus equivalent to about 3% of its GDP in 2010. Consequently, its currency has strengthened though less so than an exceptional rise in the Euro and Swiss Franc, rising approximately 20% in value relative to the US dollar from 2001 to 2011, contrasting to weakening in prior decades.

Since 1 January 2003, the new shekel has been a freely [[convertible currency]]. Since 7 May 2006, new shekel [[Derivative (finance)|derivative]] trading has also been available on the [[Chicago Mercantile Exchange]].<ref>{{cite press release |publisher=Chicago Mercantile Exchange |date=6 April 2006 |url=http://www.cme.com/about/press/cn/06-45shekel18024.html|title=CME to Launch Foreign Exchange Contract on Israeli Shekel}}</ref> This makes the new shekel one of only twenty or so world currencies for which there are widely available currency [[futures contract]]s in the [[foreign exchange market]]. It is also a currency that can be exchanged by consumers in many parts of the world.<ref>{{cite web |url=http://www.haaretz.com/hasen/spages/954033.html |title=Israelis can soon travel the world with shekels in their pockets |work=[[Haaretz]] |access-date=15 March 2018}}</ref><ref>{{cite web |url=http://fr.jpost.com/servlet/Satellite?pagename=JPost/JPArticle/ShowFull&cid=1211434107513|title=shekel begins trading on global markets |archive-url=https://web.archive.org/web/20110813133456/http://fr.jpost.com/servlet/Satellite?pagename=JPost%2FJPArticle%2FShowFull&cid=1211434107513 |archive-date=13 August 2011 |work=[[Jerusalem Post]] |access-date=15 March 2018}}</ref> On 26 May 2008, [[CLS Group|CLS Bank]] International announced that it would settle payment instructions in new shekels, making the currency [[convertibility|fully convertible]].<ref>{{cite web |date=26 May 2008 |url=http://www.cls-group.com/news/article.cfm?objectid=127EC3A9-F263-C9E9-19BE3E0623DCF229&origin=26E70E8A-14C7-4247-BC9E9B0B321D4D68 |title=CLS Bank live with Israeli shekel and Mexican Peso |url-status=dead |archive-url=https://web.archive.org/web/20080530170857/http://www.cls-group.com/news/article.cfm?objectid=127EC3A9-F263-C9E9-19BE3E0623DCF229&origin=26E70E8A-14C7-4247-BC9E9B0B321D4D68 |archive-date=30 May 2008 |df=dmy-all }}</ref> The shekel in modern times is often highly [[Volatility (finance)|volatile]] caused by Israel's policies, with many countries since 2023 refusing to [[boycotts of Israel|economically cooperate]] with Israel.<ref>{{cite news |title=Macron calls to halt arms deliveries to Israel in Gaza war |url=https://www.bbc.com/news/articles/cjr3zd4d8y5o|agency=BBC}}</ref><ref>{{Cite web |url=https://en.globes.co.il/en/article-shekel-volatility-after-us-tariffs-announcement-1001506906 |title=Shekel volatility after US tariffs announcement |date=4 March 2025 |via=Globes }}</ref><ref>{{Cite web |url=https://www.reuters.com/markets/currencies/israel-shekel-stumbles-iran-hezbollah-attack-concerns-2024-08-12/|title=Israel shekel stumbles on Iran, Hezbollah attack concerns |publisher=[[Reuters]] }}</ref><ref>{{Cite web |url=https://www.dw.com/en/israel-sanctions-who-has-imposed-curbs-over-gaza-war/a-68792324 |title=Israel sanctions: Who has imposed curbs over Gaza war? |date=5 March 2024 |publisher=[[Deutsche Welle]] }}</ref>