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About Israeli's Notes |
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By law, only the Bank of Israel may issue currency in Israel (banknotes, coins,
and commemorative and special coins). The quantity and value of banknotes
and coins in circulation are affected by several factors, such as changes in
the extent and number of transactions, the rate of inflation, and the use of
checks, credit cards, and automated teller machines.
The main function of the Bank of Israel's Currency Department is to ensure a
regular supply of banknotes and coins, in accordance with public demand.
This involves:
Planning Denominations
Planning the appropriate denominations of banknotes and coins that will
enable the public to carry out its cash transactions efficiently, and at the same
time minimize the cost of issuing new currency.
Designing Banknotes and Coins
The Public Committee for the Planning of Banknotes and Coins recommends
the design of banknotes and coins which will be submitted to the Governor of
the Bank for his approval. In consultation with the Advisory Council, and with
the approval of the Minister of Finance, the Governor determines the form,
content, and other details of banknotes and coins.
Ordering Banknotes and Coins
Correctly forecasting the demand for banknotes and coins, and planning the
ordering and supply by means of international tenders, enable maximum
savings to be made in stockholding costs and the inevitable expenses
incurred in every order. Banknotes are printed and coins minted abroad, since
the requirements of Israel's economy do not justify establishing a printing
press or mint in Israel.
Storage
When they arrive from abroad, banknotes and coins are stored in the vaults of
the Bank of Israel, requiring strict transportation arrangements, rigorous
security, and meticulous control checks.
Supply of Cash
Cash is supplied to the public via the commercial banks, which order the
required quantities from the Bank of Israel in accordance with deposits and
withdrawals made by the public.
Counting, Verifying, Sorting, and Shredding
Banknotes which the banks deposit at the Bank of Israel are carefully counted
and verified (i.e., they are checked for forgeries), using sophisticated
equipment which also sorts the notes into those which are reusable and those
to be shredded. Coins undergo a similar process.
Issuing Commemorative Coins
The Bank issues commemorative coins annually and for special occasions.
These are generally made of gold or silver, and are sold to collectors and the
public through the Israel Government Coins and Medals Corporation Ltd.
The Numismatic Collection
The Bank of Israel has a large collection of new and old banknotes and coins,
some of which are on display in the exhibition entitled Legal Tender in the
Bank's premises in Jerusalem. The exhibition and numismatic display are
very popular with groups of schoolchildren, soldiers, tourists, and other
visitors.
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