Israely Economy: The New Israely Shekel

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Recommended: History of the Israeli economy

Everyday, millions of transactions take place around the world. However, each transaction effects more than just the two people or companies exchanging goods. As an aggregate, those transactions make up the world economy, the fluctuations of the world economy, and the currency used in the world economy. The United States dollar is one of the most secure and backed currencies in the world, and for that reason, the US economy is often looked to as a model to other nations. There was no exception when the newly formed Israeli government looked to make an economy of its own. The Israeli shekel and the United States dollar have a short, but important, history of interacting with each other. As will be explained, the history of the Israeli shekel plays an important role in understanding the actions taken by the Israeli National Bank. Today, the new Israeli shekel can be analyzed and understood as a complex and growing part of the world economy and a currency that will likely continue to grow and stabilize in the future world economy.
Founded in 1948, Israeli became the first established Jewish state under the leadership for Prime Minister David ben Gurion. Previously, the Jewish Mandate under control of the British Army was a safe-haven for Jews across the world. However, following World War II, the Jews flocked to Israel, causing chaos for the British and leading the development of the State of Israel on May 14, 1948. The new Israeli Government allowed for the use of the Anglo-Palestine bank note to continue until a new currency could take effect (PNCS – APBS). In June 1952 the first of the Israeli certified notes, called Israeli Pounds (ILP) began circulation. The new Bank Leumi le-Israeli backed the notes by pegging them to the Brit...

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...growing and healthy economy.
Through the information and policies that have been presented, the New Israeli Shekel is surely a strong and trusted currency. The Bank of Israel has shown that it has the ability to maintain its currency and its growing economy. The partnership with the United States assures the rest of the world that there is a world power behind Israel. And the strong economic presence that Israel has allows Israel to continue to grow and thrive. The Israeli Shekel and the US Dollar are both floating currencies that are influenced by national and world politics. While each has the ability to move on its own, there are many factors that show the strength and the relationship that they have to each other. As Israel continue to develop, we will surely continue to see the strength and the support that the Shekel carries in the international community.

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