The Bank of Israel recommends that people handle bills more carefully by keeping them in their wallets, for example. The proportion of worn out notes is 81%.
The Bank of Israel claims that taking better care of notes will improve the quality of notes in circulation, decrease the proportion of worn out notes, and save on the cost of issuing notes.
Bank of Israel currency department director Mordechai Fein today published the department’s annual review for 2004, showing that the Bank of Israel is acting to change value priorities. Among other things, it was decided to introduce a two-shekel coin, as first reported by "Globes".
Fein said that the purpose of the new coin was to save on costs of issuing coins for circulation, and streamline cash payments. An artists design competition for the new coin is currently underway. When completed, the necessary formal procedures to put the coin into circulation will be continued.
The value of cash in circulation totaled NIS 20.8 billion in 2004, an increase of 8.7% in real terms, compared with a more moderate 3.7% increase in 2003. Greater public demand for cash caused by economic recovery explains the rise in the value of money in circulation. The value of cash in circulation varies with public demand, as reflected by bank withdrawals and deposits.
Bills account for 95% of cash in circulation, and coins for 5%.
The Bank of Israel issued three memorial coins in 2004, and one set of special coins: an Independence Day 2004 “Children in Israel” coin, a 2004 series 3 coin bearing a biblical picture of the burning bush, a coin commemorating the Olympic Games in Greece, and a set of Hanukah candles.
Published by Globes [online] - www.globes.co.il - on July 4, 2005