How Much Is the Israeli New Shekel Worth?
Uncover the Israeli New Shekel's true value. Learn what influences its worth and practical ways to manage your currency needs.
The Israeli New Shekel (ILS) serves as the official currency of Israel, playing a central role in its dynamic economy. This modern currency, often symbolized as ₪, facilitates all financial transactions within the country. Its existence reflects Israel’s economic independence and its position in the global financial landscape. The shekel is integral to daily life and commerce, supporting a high-tech and innovation-driven economy. It underpins a sophisticated financial system, connecting local markets with international trade.
Understanding the Shekel’s Current Value
The value of the Israeli New Shekel is determined by its fluctuating exchange rate against other global currencies. For instance, as of early August 2025, one Israeli New Shekel is approximately worth $0.29 US dollars. Similarly, one Israeli New Shekel converts to about 0.25 Euros or 0.22 British Pounds.
To find the most up-to-date exchange rates, individuals can consult reputable financial news websites, dedicated currency converter platforms, or the official website of the Bank of Israel. These sources typically display interbank rates, which are the rates at which banks trade currencies with each other. The retail rates offered to consumers by exchange bureaus or banks may differ slightly due to various fees or spreads. This difference, often called the bid/ask spread, represents the cost of exchanging currency.
Factors Influencing Shekel Value
Several economic and geopolitical factors contribute to the Israeli New Shekel’s fluctuating value in the global market. Economic indicators such as inflation rates, interest rates set by the Bank of Israel, and the country’s Gross Domestic Product (GDP) growth impact its value. For example, the Bank of Israel has maintained its benchmark interest rate at 4.5% since early 2024, influencing the attractiveness of shekel-denominated investments. Inflation, which was 3.1% in July 2025, also plays a role, with the Bank of Israel aiming for a target range of 1-3%.
The trade balance also affects the shekel’s demand. A surplus, where exports exceed imports, generally indicates a stronger demand for the currency. Israel’s economy is heavily export-driven, particularly in high-tech goods, pharmaceuticals, and defense technology. Geopolitical stability within Israel and the broader region can influence investor confidence and currency value. Heightened tensions often result in a weaker shekel, while periods of stability can see it strengthen.
Global market trends, including economic conditions or crises in major economies, can affect the shekel. The Bank of Israel actively monitors these factors and may intervene in the foreign exchange market to stabilize the currency. The central bank has historically intervened to moderate appreciation or depreciation, supporting economic activity and managing inflation. Such interventions involve buying or selling foreign currency reserves to influence the shekel’s exchange rate.
Practical Applications and Conversion
Understanding the shekel’s value is relevant for individuals traveling to Israel or engaging in international transactions. Tourists commonly exchange currency upon arrival, utilizing ATMs, dedicated exchange bureaus, or relying on credit and debit cards. While ATMs often provide competitive exchange rates, be aware of potential transaction fees charged by both local and home banks. Exchange bureaus may offer varying rates.
For online transactions, the shekel’s value impacts the cost of goods or services purchased from Israeli businesses. The exchange rate applied by online payment platforms or credit card companies can differ from the interbank rate, including markups or conversion fees. Individuals sending or receiving remittances to or from Israel should also consider the prevailing exchange rates and associated transfer fees, which vary among service providers.
When converting currency, check multiple sources for current rates to ensure a favorable exchange. Utilizing official channels and reputable financial institutions helps mitigate the risk of unfavorable rates or hidden charges. Being informed allows for better financial planning and cost-effective decisions when dealing with the Israeli New Shekel.