Bank of Israel confirms to issue 2 shekel coin

Procedures for the minting will be completed in a few months.

The Bank of Israel has confirmed that it will mint a NIS 2 coin, as first reported by “Globes”. The process took shape in recent months, following the establishment of the Bank of Israel advisory committee. Minister of Finance Abraham Hirchson must give final approval for the minting of the new coin. The procedures will be completed in a few months.

The Bank of Israel says the new NIS 2 coin will make cash transactions easier, saving minting costs, and will reduce currency production and maintenance costs.

The design of the NIS 2 coin will be based on an ancient Jewish coin bearing an image of a horn of plenty.

The 2005 annual Bank of Israel Currency Department survey found that NIS 24.4 billion in coins and notes were in circulation at the end of 2005, 17.5% more than the NIS 20.8 billion in circulation at the end of 2004. In contrast, the increase of money in circulation rose 7.2% a year in 2002-03.

The main factors for the rapid increase of currency in circulation last year were a growth in cash transactions, especially vis-a-vis Palestinians; rapid economic growth; and population growth.

Bank notes accounted for 95% of currency in circulation, and coins for 5%. 51% of coins in circulation are 10 agorot coins, mostly used for public transportation. NIS 1 coins, 22% of coins in circulation, are mainly used for vending machines. NIS 5 and NIS 10 coins account for 3% of coins in circulation.

Published by Globes [online], Israel business news - www.globes.co.il - on August 8, 2006

© Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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