Israeli New Shekel (NIS): Denomination & Coin Guide

Illustrated Specimen Details: Copper-Nickel 5 New Shekels

Example Specimen: 5 new shekels, 2021 (State of Israel)

Authority & Heraldry: This circulating commemorative coin was issued "With Gratitude to the Medical Teams" for their response during the COVID-19 pandemic. The obverse features the Emblem of Israel (a temple menorah surrounded by an olive branch on each side), the name of the state in three languages (اسرائيل - ISRAEL - ישראל), and the date ה'תשפ"ב (JE 5782, corresponding to 2021 in the Gregorian calendar). The reverse displays the denomination 5 שקלים חדשים (NEW SHEKELS - شيقل جديد), a symbolic image of two hands clasped together representing a medical service worker with a stethoscope and a patient, and expressions of gratitude in three languages (WITH GRATITUDE - مع الامتنان - בהוקרה).

1. STATE OF ISRAEL (1985-present): 1 new shekel = 100 agorot (singular: agora)

The name of the new shekel coin derives from an ancient weight measure used for thousands of years in Mesopotamia and throughout the Middle East. The modern currency name was chosen to emphasize continuity with the monetary traditions of ancient Israel and Judea. Historically, the denomination was indicated in English on coins as "sheqel" (1980-1985) or "new sheqel" (from 1985). However, since 2015, Israeli coins have used the spelling "new shekel". While "sheqel" is the correct Latin transliteration, "shekel" is a more convenient spelling for English speakers.

History and Economic Role of the New Shekel

The new shekel (commonly abbreviated as NIS) is the official modern currency of Israel. It was introduced on 1 January 1986 as part of the Israeli Economic Stabilization Plan, a major monetary reform aimed at combating the severe inflation that affected the country during the early 1980s.

The monetary system is defined as:

• 1 new shekel = 100 agorot
  → therefore 1 agora = 1/100 new shekel

The 1985-1986 Monetary Reform

The new shekel replaced the hyperinflated old Israeli shekel at a conversion rate of:

• 1 new shekel = 1000 old shekels

This reform successfully stabilized the Israeli economy and restored confidence in the national currency. Since its introduction, the new shekel has become one of the most stable currencies in the Middle East. In 2003, it became a fully convertible currency, significantly increasing its role in international trade and global financial markets. Although the official name remains "new shekel", the word "new" is often omitted in everyday speech, where people simply refer to the currency as the shekel.

Numismatic Perspective and Characteristics

Modern Israeli coin designs intentionally reference ancient coins discovered by archaeologists in the region, bridging the gap between the modern State of Israel and the Second Temple period. Current circulating coins are struck in nickel-plated steel, nickel-brass, and bi-metallic alloys.

Over the years, inflation and low purchasing power led to the withdrawal of the fractional 1-agora and 5-agorot coins, making the 10-agorot coin the smallest circulating denomination today. The new shekel successfully combines modern monetary stability with a name and symbolism deeply rooted in the ancient history of the Near East.