The Old Israeli Shekel: A Historical Perspective

Introduction

The old Israeli shekel was the currency of Israel from 1980 to 1985. It was replaced by the new Israeli shekel in 1985. The old Israeli shekel was subdivided into 100 agorot.

History of the Old Israeli Shekel

The old Israeli shekel was introduced in 1980 as a replacement for the Israeli pound. The Israeli pound had been the currency of Israel since 1948. The old Israeli shekel was initially pegged to the US dollar at a rate of 1 US dollar = 10 old Israeli shekels.

In 1983, the old Israeli shekel was devalued by 20%. This was done in an attempt to reduce inflation. However, the devaluation did not have the desired effect, and inflation continued to rise.

In 1985, the old Israeli shekel was replaced by the new Israeli shekel. The new Israeli shekel was initially pegged to the US dollar at a rate of 1 US dollar = 1.5 new Israeli shekels.

Coins and Banknotes

The old Israeli shekel was issued in coins and banknotes. The coins were denominated in 1, 5, 10, 25, and 50 agorot, and 1 old Israeli shekel. The banknotes were denominated in 5, 10, 20, 50, and 100 old Israeli shekels.

Inflation

The old Israeli shekel was plagued by inflation. The inflation rate reached a peak of over 100% in 1984. This was due to a number of factors, including the devaluation of the old Israeli shekel in 1983.

Replacement of the Old Israeli Shekel

The old Israeli shekel was replaced by the new Israeli shekel in 1985. The new Israeli shekel was pegged to the US dollar at a rate of 1 US dollar = 1.5 new Israeli shekels. This helped to stabilize the Israeli economy and reduce inflation.