Below is a detailed list of whats needed:
Israel’s Monetary System:
From November 1, 1927
British Mandate of Palestine
1 Palestine Funt (Pound) = 1,000 mils
From August 18, 1948
Anglo-Palestine Bank
- One Palestine Pound = 1,000 mils
From December 24, 1948
Anglo-Palestine Bank
and / Israel Ministry of Finance (For Emergency Currency)
- One Palestine Pound = 1,000 prutot
(mils was changed to prutot)
From June 29, 1952
Bank Leumi Le-Israel
and / Israel Ministry of Finance (For Emergency Currency)
- One Israeli Lira (Pound) = 1,000 prutot
From December 1, 1954
Bank of Israel
- One Israeli Lira (Pound) = 1,000 prutot
From January 1, 1960
Bank of Israel
- One Israeli Lira (Pound) = 100 agorot
(prutot was changed to agorot)
From February 24, 1980
Bank of Israel
(One zero was dropped from the denomination)
Currency unit renamed to “Sheqel” and “New Agorot”
- One Sheqel (IS) = 100 new agorot (= to 10 Israeli Lirot of Lira system)
- One New Agora = 10 old agorot
From September 4, 1985
Bank of Israel
(Three zeros dropped from denomination)
Currency unit renamed to “New Sheqel”
- One New Sheqel (NIS) = 100 agorot (= 1,000 old sheqel)
- One Agora = 10 “old” sheqalim
Its pretty complex and confusing, but the stories behind these changes are fascinating. Below is a synopsis:
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The Anglo-Palestine Bank Limited
Provisional Issue
(Emergency Notes)
Notes were to be Issued: 1948
1 Palestine Pound = 1000 Mil(s)
When the British Mandate over Palestine ended on 15th May 1948, and the British authorities subsequently left the country, they took with them most of the banknotes that were in circulation since 1927.
The leadership of the Yishuv was well prepared for such an event. Fearing an acute shortage of money, plans were made in the beginning of 1948 to print emergency currency. The Anglo-Palestine Bank ordered in strict secrecy from the Shoshani printing house in Tel Aviv currency notes in denominations of 500 Mils, 1 Pound, 5 Pounds and 10 Pounds. These notes were printed on one side only. The total value of notes printed amounted to 7,465,000 Palestine Pounds, to be placed into circulation in times of emergency only.
These notes never entered circulation, and were destroyed during September-October 1948.
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The Anglo-Palestine Bank Limited
Notes Issued: 1948
1 Palestine Pound = 1000 Mils
When the leaders of the Yishuv (the Jewish community in British Mandatory Palestine) were engaged in establishing the new State, one of the matters they had to deal with was its currency. As the name of the new nation had not been decided, the question arose as to what would be printed on the banknotes. The banknotes could not be printed in this country as the British Mandate had not yet expired, and also for lack of the required technical expertise. At the same time it was clear that no reputable foreign firm would print money for a nonexistent state. After considerable effort, Siegfried Hoofien, then Chairman of the Board of the Anglo-Palestine Bank, persuaded the American Banknote Company of New York to print the banknotes. To obviate the need for State Department approval for printing banknotes of a foreign country, the notes as ordered gave no indication of their being legal tender. The legend "Legal tender for payment of any amount" was subsequently overprinted. In addition, the company stipulated that its name should not appear on the notes. The design of the banknotes was based on different combinations of guilloches in the company's stock, some of which were used for printing banknotes for China! When the banknotes were ordered, no one yet knew what the name of the new state would be, let alone its currency. It was therefore decided to print "Palestine Pound" on the notes, the currency of the mandate.
The banknotes reached this country secretly in July 1948. On August 17 the government passed a law declaring the notes legal tender, and they were put into circulation on the following day.
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Israel (Ministry of Finance)
Fractional Paper Currency Series I
Notes Issued: 1948
Mil
In the first years of the State there was a shortage of coins. Hence, the Finance Ministry decided to issue fractional currency to meet the need for small change.
The first series, denominated in Mil (1000th of a Pound), was issued in 1948, to alleviate the chronic shortage of coins during the early months of Statehood, when the country was still embroiled in the War of Independence.
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State of Israel (Ministry of Finance)
Fractional Paper Currency Series II
Notes Issued: 1952 - 1953
Pruta
In the first years of the State there was a shortage of coins. Hence, the Finance Ministry decided to issue fractional currency to meet the need for small change.
The second series, denominated in Pruta (1000th of a Lira), was issued in 1952-53.
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Bank Leumi Le-Israel B.M.
Notes Issued: 1952
1 Israel Pound (Lira) = 1000 Pruta(h)
On 1st May 1951 all assets and liabilities of the Anglo Palestine Bank were transferred to a new company called Bank Leumi Le-Israel B.M., and it therefore became necessary to issue a new series of banknotes. These were almost identical to the Anglo-Palestine Bank series, except that the color of some of the notes was different. The name of the currency was changed to "Israeli Lira" ("Israel Pound").
The new notes were introduced in June 1952, along with a 10 percent compulsory loan levied on cash holdings and current accounts.
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Series I of the Lira
Landscapes
Notes Issued: 1955
1 Lira = 1000 Pruta
The Bank of Israel, Israel's State bank, was established on 1st December 1954, over 6½ years after independence. From that moment onward, the authorization to print and issue money was transfered from Bank Leumi Le-Israel B.M. to the newly formed Bank of Israel. A new series of banknotes was prepared within the authority vested in the Bank by the Bank of Israel Law.
Typical Israeli landscapes were chosen as the motif, and commissioned graphic artists from Thomas de la Rue and Co. of London to design the notes. Abstract patterns were printed on the back of the notes. Four notes were gradually put into circulation in from 1955 through 1957. However, due to extreme unpopularity with the public, who especially disliked the "psychedelic" design of the reverse guilloches, but which also had no nice words to say about the "Soviet picture-postcard" designs on the obverse, this first series of Banknotes was soon to be replaced with a new series.
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Series II/III/IV of the Lira
Notes issued: 1958 - 1975
1 Lira = 100 Agorot
The abstract patterns on the reverse of the first series, as well as their "Soviet postcard" obverse design, did not meet with public approval. When criticism mounted, a new series was prepared, illustrating different walks of Israeli life as the obverse motif and archaeological subjects as the reverse motif. The shape and size of the notes differed from those of the previous series, and the basic sketches were the work of Israeli artists. The series was put into circulation in 1959-60, and gradually replaced the previous series.
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Sheqel series
Notes Issued: 1978 - 1985
(released as from 1980)
In June 1969 the Knesset (Israel's parliament) passed a law providing for the Sheqel to become the currency of Israel at a date to be determined on the recommendation of the Governor of the Bank of Israel. In November 1977 conditions were considered ripe for implementing this law, and in May 1978 Prime Minister Menachem Begin and Finance Minister Simcha Ehrlich approved the Governor's proposal to introduce a series of Sheqel banknotes identical to the Lira notes except for the denominations, which were to be determined by dropping one zero from the denominations of the Lira series. The notes were prepared in the same color and size and with the same portraits as the Series IV of the Lira, in order to make it easier for the public to become familiar with the new denominations.
The preparations were conducted in complete secrecy over a period of more than two years. On 22nd February 1980 the Sheqel was declared legal tender, and the first notes went into circulation on 24th February 1980.
This was the largest series of banknotes in the history of the State of Israel. Initially there were four denominations (1,5, 10 and 50 Sheqalim), but as inflation accelerated, another five were added between 1981 and 1985 - 100, 500, 1000, 5000 and 10000 Sheqalim.
Beginning with the IS 500 denomination, the banknotes were printed in distinct colors and standard size of 76 x 138 mm, thus achieving a substantial saving in production costs. A new security device - a look-through - was incorporated, while special signs for the blind continued to be printed in various geometrical forms.
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Series I of the New Sheqel
(Series VI since the establishment of the Bank of Israel)
Notes Issued: 1985 - 1992
In September 1985 the New Sheqel, equal to 1,000 old Sheqalim, became the currency of Israel. The dropping of three zeros from the old Sheqel denominations was intended to simplify money calculations and to facilitate cash payments and financial recording. The name "Sheqel" was retained so as not to deviate from the original intention of the legislator as embodied in the Sheqel Currency Law, 5729-1969, viz., to preserve the ancient name of Israel's coinage.
The first series included a new denomination - NIS 50. Later on a NIS 100 banknote was introduced, and in 1986, for the first time since the establishment of the state, an intermediate denomination of NIS 20 was issued.
The New Sheqel series continued the trend of perpetuating the memory of prominent personages in Jewish history. The colors and other characteristics of the first banknotes are similar to those of the old Sheqel series. The NIS 20, NIS 50, NIS 100 and NIS 200 notes were printed in distinct colors different from the previous ones in order to facilitate their identification by the public.
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Hope you enjoyed this article.
Aaron