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Annual Report 2014

Bank of IsraelCurrency Department

Jerusalem, Av 5775 - August 2015

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© Bank of IsraelPassages may be cited provided source is specified.

Catalogue # 601828

Should there be changes to the Report, they will be published on the Bank of Israel’s website at http://bankisrael.org.il/en

Design and layout: Bank of Israel Publications UnitPrinted in Israel by Maor Wallach Printing, Jerusalem

Introduction

I am honored to present the Currency Department’s Annual Report for 2014.

The Bank of Israel Currency Department operates under the authorities set out in the Bank of Israel Law, and is the only entity authorized to issue banknotes, coins and commemorative coins and to regulate the currency system in Israel. The Currency Department is thus responsible for the country’s cash, from the stage of planning the alignment of quantities of cash with forecast demand, through the design, selection and integration of security features and issue of banknotes, coins, and commemorative coins, to the regulation of the cash system’s operation.

The data presented in this report show that the volume of cash circulation in the State of Israel continues to increase consistently each year, despite the availability of advanced electronic means of payment. It should be emphasized that the role of the Currency Department is to supply cash in accordance with actual demand during routine times and emergencies. Alongside the supply of cash in accordance with demand, the Department acts to protect the currency from counterfeits, and to maintain adequate quality of the cash in circulation.

The widespread activity of the Department is carried out through the Issuance Division, the Cash Management Division and the Policy Planning and Control Unit. This activity includes the minting of coins and the printing of banknotes of the required quantity and quality according to the needs of cash circulation, the sorting and counting of hundreds of millions of banknotes and coins using advanced technology, storing them in vaults for routine and contingency needs, and distribution to the banking system for use by the public.

The Department is responsible for the integration of advanced security features into the banknotes, formulating criteria for the quality and control of cash, providing training for banking corporations’ cash centers and supervising them, public information, and counterfeit prevention activities in conjunction with the Israel Police and other parties.

The launch of the new NIS 50 banknote is an important milestone in the new banknote series project being led by the Currency Department, and drew broad attention. On the 21st of Elul 5774 / September 16, 2014, the new NIS 50 banknote was put into circulation, following the approval of its final design by the Public Committee for the Planning of Banknotes, Coins and Commemorative Coins under the chairmanship of retired Supreme Court Justice, the Hon. Jacob Turkel, as well as the Governor of the Bank of Israel, the Supervisory Council, and the Government of Israel. The launch was preceded by a broad public information campaign and advanced operational preparations, including the planning and design of the banknote and its security features, the production of the banknote, meticulous quality control, and preparations both at the Bank of Israel and in the market as a whole. Due to the thorough advanced preparations

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TaBle of conTenTs

Letter from the Director of the Currency Department ........................................ 3A. Definitions................................................................................................ 6B. The Currency Department's functions...................................................... 6

Box 1: Bank of Israel Regulations (Currency Services)................................. 9Box 2: The first denomination of the new series of banknotes.................. 13

C. Currency in circulation ............................................................................ 201. Circulation............................................................................................ 202. Banknotes in circulation....................................................................... 223. Coins in circulation............................................................................... 28

D. Changes in banknotes and coins in circulation......................................... 31E. Counterfeit banknotes and coins............................................................... 31

1. Anti-counterfeit action and tracing counterfeit money.......................... 312. How to identify an authentic Series B banknote................................... 34Box 3: Guidelines on the use of photocopies and replicas of banknotes and coins.................................................................................................... 35Box 4: Bank of Israel rules regarding damaged currency......................... 36Box 5: Defaced currency............................................................................ 40

F. Commemorative coins............................................................................... 40G. Public Committee for the Planning of Banknotes, Coins and

Commemorative Coins.............................................................................. 501. Composition of the Committee.............................................................. 502. The Committee’s activity in 2014......................................................... 50

Appendix: Statistical tables................................................................................. 51

on the operational level, the entry of the new NIS 50 banknote into circulation was successful, the replacement of the banknotes in circulation is being carried out on an ongoing basis, and as of the end of July 2015, about 70 percent of the NIS 50 banknotes in circulation are from the new series.

Putting a banknote into circulation is a step that requires preparation and acclimation of the public. During the period of the switch, awareness of the security features on the banknote is of particular importance, because it is likely that counterfeiters will try to exploit the public’s lack of acquaintance with the characteristics of the new banknote to criminally distribute copied banknotes and counterfeits in general. Since this is a phenomenon known around the world, the Currency Department acted to provide the public with the tools and means to get to know the new banknote and its security features ahead of time, through public information pamphlets in a variety of languages, broad information on the newbanknotes.org.il website, and a mobile application. The security features included on the new banknotes are prominent and clear. They are intended to make it difficult for counterfeiters and to assist the public in identifying genuine banknotes. Information on the security features can be found in this report. We recommend that the public use the variety of advanced security features to make sure that the banknotes in its possession are genuine.

The Currency Department continues to advance the new banknotes series project, and is preparing toward the launch of the remaining denominations in the next few years. In addition, the Department acted during 2014 to draft rules regulating currency in Israel in accordance with the Bank of Israel Law. These rules were published on June 21, 2015 and came into effect 60 days later.

This report includes broad and detailed information on the Department’s activity during the past year. More information can be found on the Department’s website at www.boi.org.il/en/currency. The Bank of Israel attributes importance to maintaining close contact with the public and to increasing awareness regarding currency both on the academic level—acquaintance with the history of Israeli currency—and on the practical level: informed consumer behavior, acquaintance with the security features on the banknotes, and the responsible use of banknotes and coins.

Ilan SteinerDirector of the Currency Department

http://newbanknotes.org.il

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a. DefInITIons

currency in circulation: Currency held by the public and stocked by the commercial banks.

Banknotes / coins in circulation: The banknotes / coins held by the public and stocked by the commercial banks.

M1—means of payment in the economy: The total cash (banknotes and coins) held by the public, plus current accounts at the commercial banks.

Demand: The change in the number of banknotes and coins in circulation resulting from the difference between withdrawals and deposits of banknotes and coins from the Bank of Israel.

Wear and tear: The number of worn banknotes taken out of circulation when the Bank of Israel counts and sorts deposited banknotes. (There is almost no wear and tear of coins.)

consumption of banknotes or coins: Demand plus wear and tear.

cash centers: Cash handling centers of the commercial banks and of Israel Post, which have been recognized by the Bank of Israel. These are the only entities authorized to withdraw or deposit cash at the Bank of Israel.

B. The currency DeparTMenT’s funcTIons

The Bank of Israel is granted the sole authority by law to issue currency in Israel (banknotes, coins, commemorative coins and special coins). The law establishes that the Bank of Israel shall issue currency and shall regulate and guide the currency system, with the aim of ensuring that the economy has a proper supply of money in line with supply and demand surpluses. There are tasks and activities implicit in this role in three areas:

1. The issue of banknotes, coins, and commemorative coins

Designing banknotes and coins: The Governor of the Bank of Israel, subject to the approval of the Bank of Israel’s Supervisory Council and the government, determines the form of the banknotes, coins and commemorative coins. The Governor is assisted by the Committee for Planning Banknotes, Coins and Commemorative Coins—a public committee appointed by the Governor that selects which design proposals will

be submitted to the Governor. The Committee is currently chaired by retired Supreme Court Justice Jacob Turkel.

printing banknotes and minting coins: The Currency Department issues tenders and orders inventory from the suppliers of coins and banknotes in accordance with projected demand and taking into account savings in the expenses inherent in maintaining inventory and in every order.

Issuing commemorative coins: Since the Bank of Israel is the sole issuer of legal tender in Israel, it also issues commemorative coins and coins in honor of special events each year. These coins are made of silver or gold, and the Israel Coins and Medals Corporation Ltd.—also by law—markets them to the public and to collectors in Israel and around the world.

2. planning and managing the currency supply

Planning the scale of denominations: Planning the appropriate scale of denominations of banknotes and coins, which makes it possible for the public to efficiently carry out cash transactions and saves issuance costs.

The efficient mix of denominations in circulation: Regulation and guidance of the currency system in order to ensure the proper mix of denominations in circulation.

Ensuring sufficient inventory to cover demand for currency during routine times and emergencies: The Currency Department plans the inventory of cash in order to ensure that it is sufficient to cover projected demand at all times, at a high level of security, while taking into account the costs inherent in holding inventory.

3. cash management

The supply of cash in circulation: The Bank of Israel provides the public with cash through the cash centers owned by the commercial banks and Israel Post. These entities regulate the surplus supply and demand of banknotes and coins among themselves and between them and their customers, and withdraw from the Bank of Israel only the surplus demand. The surpluses are derived from the withdrawals and deposits of the public at the branches of these entities.

overseeing the quality of currency in circulation: The Bank of Israel sets standards for the commercial banks in terms of maintaining the quality of the money in circulation. In accordance with these standards, the banknotes and coins deposited by the public are counted and sorted at the cash centers, during which the authenticity and quality of the money are inspected by designated counting machines purchased by the cash centers and approved by the Bank of Israel. (The list of approved machines is published on the Bank of Israel’s website.) The Bank of Israel determines the quality standard, which defines what banknotes are fit or unfit for circulation. The standard is intended to ensure

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that the public always holds banknotes of proper quality. It is also intended to impose uniformity in the quality definition that applies to banknotes returned to circulation by the cash centers. In order to improve the professional level at the cash centers, the bank of Israel and the cash centers have authorized machine trustees—employees of the cash centers whose job it is to make sure that the machines operate according to the standard. The cash centers are required to deposit unfit banknotes and coins with the Bank of Israel, where the banknotes are shredded and the coins are sent to be melted down.

storage of the cash inventory: The Currency Department stores banknotes and coins in the Bank of Israel’s vaults, under guard and control, according to strict shipment, protection, storage and control procedures.

4. other activities carried out by the currency Department

prevention of counterfeiting: According to the law, only the Israel Police is tasked with enforcement against the counterfeiting of currency.

The Currency Department acts to uncover counterfeit cash and to prevent its distribution. This is done by tracking the characteristics of counterfeits that exist in the market, examining and distributing information to entities dealing with cash; upgrading the security features embedded in banknotes; increasing public awareness—through advertising and training sessions—about the use of the security features; and through cooperation with the police, the commercial banks and the international organizations leading the struggle against counterfeiting.

The commercial banks are required to examine the authenticity of banknotes and coins before returning them to circulation through tellers and cash dispensing machines (ATMs).

responding to public enquiries: The Currency Department receives many varied enquiries from the public, indicating that the public is involved and interested in the field of cash. This is reflected in requests for information, reactions to the issue of new banknotes and coins, suggestions regarding the currency, and awareness of the details appearing on the banknotes and coins. In 2014, the Department received 368 enquiries in writing, by email or mail.

Enquiries regarding currency can be sent to: [email protected]

The Currency Department’s website http://boi.org.il/en/currency includes information in Hebrew and English.

service to the public: The Currency Department provides the public with cashier services and with replacement of impaired banknotes and coins. These services are provided at the Bank of Israel’s teller in Jerusalem, Sunday to Thursday from 8:00 am to 1:00 pm. (Updates regarding public reception hours are published on the Currency Department’s website.) The teller’s phone number is 02-655-2847.

The public

Commercial banks and Israel Post

ATMs and cash depositing machines

Bank of Israel

Currency fit for circulation

Cash centers

Cash sorting, regulating surplus

supply and demand, and re-

circulating

Box 1: Bank of Israel (currency services) regulations, 5775—2015

Pursuant to the Bank of Israel Law, the Currency Department published regulations on the 21st of June 2015 concerning currency services. These regulations set out that the Bank shall provide all citizens with cashier services to an amount that shall not exceed NIS 5000 or 1000 coins per month, the lower of the two. As such, the deposit of currency at commercial volumes shall be done at the banking corporations, which will assist in the regulation and efficiency of the currency system.

These regulations are part of the general regulation of the currency system. In the past, the Bank customarily provided cashier services to the broad public at its cash windows, in accordance with Section 33(a) of the Bank of Israel Law, 5714–1954. This law was cancelled and replaced by a new law in 2010—the Bank of Israel Law, 5770–2010. Section 46 of the new law states: “The Governor, per approval of the Council, may determine by rules the services the Bank shall provide regarding currency, the entities to which said services shall be provided, and the conditions under which this shall be done; he may also prescribe the fees that may be charged for said services.” After the new law came into effect, the Bank continued to provide exchange services to the public at no cost and with no restriction. In practice, it was mainly companies, business owners, non-profit

mailto:[email protected]

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organizations, and so forth that took advantage of this services. This situation imposed high inputs and operational risk on the bank, derived from the volume of currency coming from unidentified sources without prior examination, thereby raising the risk of receiving counterfeit currency. Central banks around the world generally do not provide service to the broad public, other than the replacement of damaged coins or banknotes and when replacing a series of coins or banknotes. The Bank of Israel will continue to provide this service, in addition to exchange services, under these regulations.

Bank of Israel (Currency Services) Regulations, 5775–2015

By the power of my authority pursuant to Section 46 of the Bank of Israel Law, 5770–2010 (hereinafter: the Law), and with the approval of the Supervisory Council of the Bank of Israel as defined in Clause 2 of Chapter 4 of the Law, I set out these regulations:

Definitions 1 In these regulations—“Customer” – A member of the public;“Currency” – A banknote or coin issued by the Bank for circulation and serving as legal tender according to the law;“Denomination” – The denominated value of the currency;“Exchange” – Providing a banknote or coin or a combination of both in exchange for the receipt of a banknote or coin or a combination of both, of a value equal to their total denominated amount.

Exchange services 2 The bank shall provide exchange services in an amount that shall not exceed NIS 5000 or 1000 coins, the lower of the two, per month per customer.

Effective date and applicability

3 These regulations shall be effective sixty days following their date of publication.

Explanatory notes

General

Section 33(a) of the Bank of Israel Law 5714–1954 set out that “A person providing the bank with an amount of currency shall be entitled to receive in exchange the same amount, without payment, in banknotes or coins with the denominated value insofar as required by the provider…”. Accordingly, the Bank customarily provided currency exchange services at the Bank’s cash windows to the broad public.

The stated law was cancelled in 2010, and replaced by a new law—the Bank of Israel Law, 5770–2010. Section 46 of the new law set out that, “The Governor, per approval of the Council, may determine by rules the services the Bank shall provide regarding currency, the entities to which said services shall be provided, and the conditions under which this shall be done; he may also prescribe the fees that may be charged for said services.”

The change between the Sections in the “old” and “new” laws were clarified by explanatory notes to the relevant section: “The cancellation of the obligation in Section 33 of the existing law to provide any person with exchange services, and its replacement with granting authority to the Governor per approval of the Council to determine by rules the services the Bank shall provide and their conditions, including the fees collected for them (Section 46).”

Even though the Bank continued providing exchange services to the public at no cost and with no restriction even after the new law came into effect. In practice, the service is used mostly by companies, business owners, non-profit organizations, and so forth, imposing on the Bank of Israel, and on the general public, the counting and operational costs of large volumes of currency. It should be emphasized that this situation imposes high inputs on the Bank of Israel, as well as operational risk derived from the volume of currency coming from unidentified sources without prior examination such as that carried out by the banking corporations, thereby increasing the risk of receiving counterfeit currency. The Bank views these regulations as part of the general regulation of the currency system. Therefore, the deposit of currency in commercial quantities shall be done at the banking corporations, thereby helping them to regulate and streamline the currency system. Central banks around the world generally do not provide service to the broad public other than replacing damaged coins or banknotes and when replacing a series of banknotes or coins. The Bank of Israel shall continue

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to provide the stated service in addition to the provision of exchange services as stated in these regulations.

The Bank will now regulate the continued provision of the service as required by the Bank of Israel Law.

It should be emphasized that these regulations do not override the provisions of Section 45(b) of the Law, which sets out that following the issue of a cancellation order for banknotes, “A person who, during the period set forth in the Cancellation Order, delivers to the Bank, banknotes or coins that have ceased to be legal tender according to the Order, is entitled to receive legal tender of equal value in exchange.”

Section 2

The Bank will restrict the volume of cash brought to the Bank’s cash windows. The stated volume is set taking note of the service provided particularly to the broad public, and also corresponds with other decisions regarding the reduction of the use of cash.

The volume set out in this section balances the continued service to the public and the inputs imposed on the Bank in respect of the stated service and the risks and operational abilities of the Bank to count, sort and verify the source of the currency.

Section 3

It is proposed that the applicability shall be sixty days following the publication of the regulations in Reshumot, since these regulations were published on the Bank of Israel’s Internet site so that the public had sufficient time to prepare for their implementation.

Box 2: The first banknote in the new series—the NIS 50 banknote

On September 16, 2014 (21st of Elul 5774), the new NIS 50 banknote—the first banknote in the new series—entered circulation through the commercial banks, automatic teller machines and branches of the Postal Company.

The new NIS 50 banknote—like all banknotes in the new series—incorporates an advanced standard of security, innovation, and accessibility, and includes a range of leading edge anti-counterfeiting security features that are integrated through various technologies. In addition, the new banknotes include designated features to aid the blind and vision impaired.

Description of the new banknote:

Denomination: 50 New ShekelsPortrait: Shaul TchernichovskyDominant Color: GreenSize: 136 mm x 71 mmDesign of obverse side:

Background picturesMicrotext

A citrus tree and its fruitsThe poem “Oh My Home, My Birthplace”

Design of reverse side:

Background picturesText

A Corinthian columnA segment of the poem “I Believe”

Features for the blind: Two pairs of lines, printed in raised and transparent ink at the bottom margins of the banknote—on the left and right sides—which can be felt with fingers.

Designer: Ms. Osnat Eshel

NIS 50 banknotes from Series B of the New Shekel, which are currently in public use, bearing the portrait of S.Y. Agnon, will continue to serve as legal tender for a number of years, and will remain in circulation in parallel with the new banknotes. As these banknotes are deposited with the Bank of Israel, they are gradually being replaced with banknotes from the new series. Since the replacement process is gradual, the public is not required to take action to replace

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the banknotes at this stage. Later on, the Bank of Israel will publish the date on which Series B banknotes will no longer be legal tender, and will determine the period for replacing Series B banknotes.

Banknote series are commonly replaced every 10–15 years, requiring preparation and acclimation before the new series is put into circulation. The Bank of Israel therefore took action to notify the major companies and entities using cash regarding the coming launch of the new banknotes and to provide guidance regarding their use. The Bank also provided advance samples of the banknotes to banks, importers of automatic cash and vendor machine parts and companies operating such machines, in order to ensure the proper calibration and adjustment of automatic machines to the new banknotes.

With the objective of increasing public awareness of the new banknote, the Bank of Israel preceded its launch with a public information program, including the distribution of thousands of brochures and flyers in five languages to bank branches, the post office, and various commercial and public entities. The Bank of Israel also acted to inform the public through major media outlets, including television, radio and print media. As part of the information program, the public was provided with detailed information about the new banknote, its security features, and the process of replacing the old banknotes, with the objective of increasing the public’s acquaintance with the details and look of the new banknote.

The Bank of Israel also launched a cellular application for the public to get acquainted with the security features, and published a large amount of information on a dedicated website at www.newbanknotes.org.il. As part of the service provided to the public, the Bank of Israel also operates a telephone enquiry line at 1-800-300-018.

examples of the various means of information used by the Bank as part of the public awareness campaign:

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The new NIS 50 banknote: prominent security features

look:1. The transparent portrait – A watermark image of the portrait, identical to the portrait shown on the obverse of the banknote, with the denomination next to it. Hold the banknote up to the light and make sure that the portrait and the denomination are visible. The feature can be viewed from either side of the banknote.2. The perforated numerals – Tiny holes forming the shape of the banknote’s denomination (NIS 50) are perforated at the top part of the banknote. Hold the banknote up to the light and make sure you notice them.3. Window thread – A green security thread is embedded in the banknote and is revealed in three “windows” on the reverse side of the banknote. Hold it up to the light and make sure that the portrait and denomination are clearly visible in the windows. The thread will change its shade if the banknote is tilted.

feel:raised ink – The portrait, the Governor’s signature, the Hebrew and Gregorian year, texts in three languages, and the designated features for the blind on the banknote’s margins are printed in intaglio. Touch these details with your finger, on both sides of the banknote, and you can feel the raised ink.

Tilt:The glittering stripe – A transparent and glittering stripe is incorporated into the banknote next to the portrait. Tilt the banknote in various directions and make sure that the Menorah symbol and the denomination appear and disappear intermittently along the stripe.The golden book – An artistic reflective foil element in the shape of an “open golden book”. Tilt the banknote backward and forward and make sure that the “book” changes its color from gold to green. Simultaneously you can see a horizontal bar moves up and down the “book”.

features for the blind and vision impairedlines in the margins – Pairs of lines are printed in raised ink on each banknote, and their number increases as the denomination of the banknote increases. The pairs of lines are located in the lower margins on the left and right, and they can be felt with the fingers.Different length for each banknote – The banknotes in the new series have different lengths. There is a 7 mm difference between each denomination.Denomination numerals – Large and dark numerals are printed in raised ink on a light background, and light numerals are printed on a dark background.Banknote color – Each banknote has a dominant color.

Accessibility of the new banknotes for the blind and vision impaired

The Bank of Israel has attributed great importance to accessibility—in the broad meaning of the term, for the entire population—throughout the planning of the series of banknotes, and will continue giving the issue prominence in the future. Therefore, the Bank has integrated many features to improve accessibility for the blind and vision impaired in the new banknotes, including:

• The banknotes in the new series have different lengths. There is a 7 mm difference between each denomination.

• Each banknote has a dominant color.• The colors of the banknotes are divided into “warm” and “cold” colors.• The denomination appears on the banknotes a number of times and with varying

degrees of contrast (dark digits on a light background and light digits are printed on a dark background).

• Lines in the margins—Pairs of lines are printed in raised ink on each banknote, and their number increases as the denomination of the banknote increases. The pairs of lines are located in the lower margins on the left and right, and they can be felt with the fingers.

• The denomination is printed in 20 mm high characters—a particularly large font compared both to the previous series and to banknotes in other countries.

• The new banknotes in red and green will, naturally, bear different numerals (20 and 50). The banknotes bearing identical numerals (20 and 200) will differ as much as possible in color (red and blue) and in length (129 mm and 150 mm).

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about the portrait – shaul Tchernichovsky

Shaul Tchernichovsky (1875–1943) was one of the greatest Hebrew poets of the first half of the 20th century, as well as a translator and a physician. He was born near the Ukrainian border and immigrated to the Land of Israel in 1931. He studied medicine and, after his graduation—and for the rest of his life—he combined his work as a physician with his work as a poet.

Tchernichovsky’s poetry is prolific and diverse, and blends the influences of both Jewish and world culture. His works were influenced by landscapes of his native country, Greek culture, the Land of Israel and the Bible. Poems like “I Believe”, “They Say There Is A Country”, and “Oh My Land, My Birthplace”, reflect his attachment to Zionism, the Jewish people and the Land of Israel. These poems, along with many others such as “I Have A Garden”, “Lily of Wonders”, and “I Don’t Love Her”, were adapted and performed by some of the best Hebrew musicians and performers. Tchernichovsky was also known as an excellent translator, and was responsible for the translation into Hebrew of classic masterpieces.

The design of the new NIS 50 banknote reflects the rich and diverse poetry of Tchernichovsky and his attachment to the Land of Israel, along with his embrace and comprehensive knowledge of world culture. The obverse side of the banknote bears his portrait and the words to the poem “Oh My Land, My Birthplace” in microtext, which inspired the incorporation of a citrus tree with fruits in the design of the banknote. The reverse side incorporates a Corinthian-style column, reflecting Tchernichovsky’s interest in classic Greek works. A sentence from his poem “I Believe” is printed on the reverse side of the banknote: “For I will still believe in man, and in his spirit, a powerful spirit.”

The new NIS 50 banknote reached the finals of an international competition

The new NIS 50 banknote reached the finals of an international competition held in May 2015 by the leading international currency organization, the IACA.

Three other countries reached the final of the competition, out of 27 countries that met the criteria and submitted candidacies in the “Best New Banknote/Series” category.

The competition organizers noted the new banknotes accession to the final of the competition and noted in their letter to the Currency Department:

“This selection recognizes the outstanding nature of your organization’s efforts, and its contributions towards making currency the best that it can be.”

The pace of replacing the old NIS 50 banknotes with new ones

At the launch of the new banknotes, there were about 52 million NIS 50 banknotes in circulation. In order to prepare for the initial demand, banknotes from the new series were distributed to the entire banking system prior to the launch. The banknotes were distributed to the public through bank tellers and automatic teller machines. At the end of the first month, there were about 13 million new banknotes in circulation, accounting for about 21 percent of circulation of the NIS 50 banknotes. Total circulation of the NIS 50 banknotes was about 63 million banknotes at the end of September 2014, an increase of 16 percent during that month. In the following months, the proportion of banknotes from the new series continued to grow at a more moderate pace. At the end of 2014, they accounted for about 30 percent of total circulation of the NIS 50 banknotes, and by July 2015, they account for about 70 percent.

50 50 51 53 52 51 52 52 50 46 41 38 35 32 26 24 22 19 18

13 1515 16 19 21 31 33 35 37 42

0

10

20

30

40

50

60

70Millions of banknotes

figure 1replacement of nIs 50 Banknotes in circulation

Series C

Series B

SOURCE: Currency Department.

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c. currency In cIrculaTIon

1. circulation

Currency in circulation at the end of 2014 totaled NIS 63 billion, compared with NIS 58 billion at the end of 2013, representing an increase of 10 percent—similar to the average growth in the previous decade, with the exception of 2008 and 2009—the peak years of the Global Economic Crisis.

The Israeli currency serves as means of payment in the Palestinian Authority as well, and the PA deposits surplus cash in its possession with the Bank of Israel.

Ninety percent of the cash in circulation is in the hands of the public, with the remainder held in vaults at the banking corporations. At the end of 2014, cash in the hands of the public constituted 5.2 percent of GDP, with the amount increasing during the year due to the low interest rates that have been prevalent in recent years. This rate is low compared to the average in the eurozone—9.6 percent in 2013. In EU member countries, the rate ranges from 2.2 percent in Sweden, where there is widespread use of debit cards, to 11.6 percent in Bulgaria.

The data on the increase in circulation show that cash continues to serve as a means of payment and/or means of holding value in the hands of the public. This is similar to the trend in many countries. In the US, currency circulation increased by 8 percent in 2014, similar to the average of the previous five years. In Australia it increased

by 6 percent, slightly above the average growth of the previous five years, and in the eurozone it increased by 5 percent in 2013.

Similar to many countries in the world, the Currency Department at the Bank of Israel is preparing for possible changes in the public’s payment habits as a result of the entry of technological innovations in alternative means of payment.

The Bank of Israel is a participant in the policy to reduce the use of cash, further to the recommendations of the Locker Committee, which examined reducing unreported capital by reducing the use of cash or other paper-based means of payment.1 Since the adoption of the Locker Committee’s recommendations may have an effect on the activity of the Currency Department for a number of years, we are preparing in advance for the changes that the implementation of the recommendations may generate in the volume of demand for cash.

a. Composition of circulation

The proportion of banknotes in circulation has steadily increased over time, at the expense of the share of coins in circulation. In 2014, banknotes accounted for around 97 percent of the total value of cash circulation, while coins accounted for around 3 percent. While demand for coins is characterized by a stable growth rate over the years, demand for banknotes is affected by changes in the public’s preference for holding cash, particularly during crises, and is therefore characterized by greater volatility.

1 The recommendations were approved by the Ministerial Committee on Legislation on May 31, 2015, and in first reading in the Knesset on July 27, 2015.

2.2 2.9 3.03.7

5.2 5.3 5.57.1

9.2 9.6 9.9 10.311.6

0

2

4

6

8

10

12

14%

figure 2cash in the hands of the public as a percentage of gDp,

Israel compared to eu countries

SOURCE: Israel - Central Bureau of Statistics and Currency Department, 2014 data.EU countries - European Central Bank, Statistical Data Warehouse, 2013 data.

Table 1: currency in circulation, end of yearComposition of circulation (NIS

billion) Rate of growth (percent)

Year Banknotes CoinsTotal

currency in circulation

Banknotes CoinsTotal

currency in circulation

2006 24.4 1.1 25.5 4% 9% 5%2007 27.7 1.2 28.9 14% 7% 13%2008 33.1 1.3 34.4 19% 6% 19%2009 40.1 1.4 41.5 21% 7% 21%2010 43.4 1.5 44.8 8% 6% 8%2011 47.4 1.6 49.0 9% 7% 9%2012 53.1 1.7 54.8 12% 6% 12%2013 55.7 1.8 57.5 5% 9% 5%2014 61.3 1.9 63.2 10% 6% 10%

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b. Seasonality in currency circulation

There are some seasonal influences in the demand for cash, which varies by month. There is higher demand during the holiday seasons—Passover in March/April and Sukkot (Tabernacles) in September/October—and during the summer vacation months of July and August. In 2014, Passover was at the beginning of April, and the holidays of Rosh Hashana and Sukkot were in September and October. Figure 3 shows that circulation declined in the following months as a result of the deposit of surplus cash, which is typical of the period following holidays.

2. Banknotes in circulation

a. The value and quantity of banknotes in circulation

The value of the banknotes in circulation in 2014 totaled NIS 61.3 billion, compared with NIS 55.7 billion in the previous year, representing growth of about 10 percent. The number of banknotes in circulation increased from 423 million banknotes in 2013 to 455 million in 2014, an increase of 8 percent. This year, as in previous years, the increase in the value of banknote circulation is mainly explained by a significant increase in the number of NIS 200 banknotes in circulation (about 13 percent in 2014). The circulation of NIS 50 banknotes increased by 6 percent in 2014, due to the entry into circulation of banknotes from the new series.

b. The composition of the banknotes in circulation by denomination

The composition of banknotes in circulation is influenced by the composition of banknotes withdrawn from bank tellers and from ATM machines. The former constituted 64 percent of the total value of withdrawals by the public from commercial banks

The composition of banknotes in ATM machines is affected by the need to balance quality of service considerations with operational efficiency considerations. The mix must be in line with the characteristics of customer withdrawals, and include sufficient banknotes of each denomination. However, the multiplicity of low denomination banknotes may lead to the frequent depletion of banknotes in the machines, and the resulting need to fill the machines more frequently with the aim of maintaining continuity of service. This increases the operating costs inherent in the movement of banknotes and in maintaining the ATM machines.

In 2014, the share of NIS 200 banknotes in circulation continued to grow. Since 2011, the NIS 200 banknotes have constituted the largest number of banknotes in circulation,

1.5-המקור: מחלקת המטבע

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2005–14 average 2014

figure 3average change in currency circulation, 2005–14%


32 51

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NIS 20 NIS 50 NIS 100 NIS 200 Total

figure 4number of Banknotes in circulation, 2009–14

200920102011201220132014

Millions of banknotes


Table 2: number of banknotes in circulation by denomination, 2007–14 (end of year, millions of banknotes)

2007 2008 2009 2010 2011 2012 2013 2014

Rate of change in

2014NIS 20 25 31 32 35 34 35 36 36 -1%NIS 50 47 46 51 48 46 51 51 54 6%NIS 100 131 140 154 145 141 146 147 152 4%NIS 200 59 81 107 129 152 176 189 213 13%Total 262 297 344 357 373 408 423 455 8%SOURCE: Currency Department.

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and they reached 47 percent at the end of 2014. At the same time, NIS 100 banknotes accounted for 33 percent, NIS 50 banknotes accounted for 12 percent, and NIS 20 banknotes accounted for just 8 percent of banknote circulation.

The growth trend in the number of NIS 200 banknotes began in the second half of 2006, when they were first put into some commercial bank ATMs, due to the considerations stated above. The NIS 200 banknotes are currently found in about 88 percent of ATMs. From the beginning of 2006 until the end of 2014, the proportion of these banknotes in circulation grew by 30 percentage points. Most of the growth came at the expense of NIS 100 banknotes, the share of which declined during the same period by 20 percentage points. The share of NIS 50 banknotes in circulation declined by 8 percentage points, and the share of NIS 20 banknotes remained the lowest of all denominations, since there are very few of them in ATM machines at a small number of banks.

It is possible to discern a continuing trend of change in the composition of the denominations in banknote circulation. The portion of NIS 50 and NIS 100 banknotes is continuing to decline, while the portion of NIS 200 banknotes continues to increase.

Reports from the cash centers to the Currency Department show that the NIS 20 banknotes tend to remain in circulation for a longer time than all other denominations before being deposited at the cash centers (15 months). This phenomenon is characteristic of the banknote with the lowest denomination in the scale, since instead of depositing it at the banks, business owners tend to keep it in their registers in order to provide change.

For the other denominations, the data indicate that their time in circulation is much shorter than it is for the NIS 20 banknote, and that the higher the denomination, the longer the banknote remains in circulation due to its increasing quality as a result of the type of use and the public’s attitude toward the banknote. These banknotes are recycled through the banks’ cash centers more often before being deposited with the Bank of Israel for sorting and shredding.

c. Machines for the withdrawal, deposit and recycling of cash

In 2014, the upward trend in the amount of withdrawals from commercial bank tellers and from ATMs continued. The average withdrawal from ATMs increased by 5 percent, to NIS 719. (The average annual increase in the past decade was 7 percent.) The aggregate withdrawal total per resident was NIS 9871, and each resident made an average of 14 withdrawals, similar to the number in 2013.

13 12 11 11 11 10 10 10 10 9 10 9 8 8 8

26 25 23 23 21 20 19 18 15 15 13 12 13 12 12

48 50 51 51 51 53 53 50 47 45 41 38 36 35 33

12 14 15 16 16 17 18 22 27 31 36 41 43 45 47

0102030405060708090

100

2000 2001 2002 2003 2004 2005 *2006 2007 2008 2009 2010 2011 2012 2013 2014

figure 5Distribution of Banknotes in circulation by Denomination, 2000–14

NIS 20 NIS 50 NIS 100 NIS 200

%

* Banknotes of the NIS 200 denomination were introduced in ATM machines in 2006.SOURCE: Currency Department.

15

3

5

10

NIS 20 NIS 50 NIS 100 NIS 200

figure 6average number of Months a Banknote is in

circulation Before Being Deposited at a cash center

SOURCE: Based on cash center reports to the Currency Department.

422 450505 550

584 616 650 685 719

0100200300400500600700800

108,000

110,000

112,000

114,000

116,000

118,000

120,000

122,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

figure 7Number of withdrawals from ATM machines and average value

per withdrawal, 2006–14

Number of withdrawals per year Average value per withdrawal

Thousands of withdrawals NIS

SOURCE: Currency Department based on Banking Supervision Department.

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In recent years, the commercial banks have expanded the ATM service platform, adding a mechanism for depositing banknotes, enabling the machines to provide banknote deposit services as well. This service has become popular for businesses, and significant portions of banknote deposit activity are now done directly by the customer through the ATM. In this process, the credit to the customer’s account is immediate and final.

In some of the automatic deposit machines at the commercial banks, there is also a mechanism enabling the recycling of deposited banknotes and their issuance to the public.

In recent months, the Currency Department issued an approval in principle for the recycling mechanism, through which an automatic machine in which banknotes have been deposited also examines the authenticity and quality of the banknotes according to the principles of the banknote quality standard, thereby making it possible to deposit banknotes through an automatic deposit machine, and to issue the same banknotes to the public through withdrawals. The commercial banks can operate the recycling mechanism in the automatic deposit machines with recycling capability that are in their possession, following a pilot and subject to meeting the requirements of the Currency Department regarding the operation of this type of machine. There are currently about 1,100 automatic deposit machines in Israel that can become deposit and recycling machines.

d. The consumption of banknotes

Banknote circulation increased by 32.5 million banknotes in 2014—more than the growth for 2013 (14.7 million banknotes)—as a result of the increase in the volume of withdrawals and the decline in the surplus volume. The number of NIS 20 banknotes declined in 2014, while the number of the other denominations increased. The greatest increase was in the NIS 200 banknote, similar to the increase in recent years.

In 2014, the wear and tear of banknotes totaled 62.5 million banknotes that were unfit for re-use. The Bank of Israel withdraws them from circulation and shreds them during the counting and sorting process, and issues new banknotes in their place.

Table 3: Consumption of banknotes, i.e., wear and tear and increase in circulation, 2006–14 (millions of notes)

Denomination 2006 2007 2008 2009 2010 2011 2012 2013 2014Total Wear and tear 88.5 81.1 85.7 51.8 84.4 75.0 81.5 36.5 62.5

Increase in circulation 6.1 21.1 34.9 47.0 16.6 15.0 35.4 14.7 32.5Total consumption 94.6 102.2 120.6 98.8 101.1 89.9 116.9 51.1 94.9

NIS 20 Wear and tear 14.0 11.9 19.4 4.0 4.9 6.0 10.3 6.1 10.5Increase in circulation 0.7 1.8 5.3 1.3 5.4 -1.2 0.5 1.1 -0.2Total consumption 14.7 13.7 24.7 5.3 10.3 4.8 10.9 7.2 10.3

NIS 50 Wear and tear 25.6 20.2 24.0 20.7 32.1 23.8 25.0 10.7 35.0Increase in circulation -1.4 1.0 -1.4 4.7 -1.4 -2.0 5.4 0.2 3.1Total consumption 24.2 21.2 22.6 25.4 30.7 21.8 30.3 10.9 38.1

NIS 100 Wear and tear 41.5 39.1 31.6 19.2 34.2 30.9 32.1 11.5 11.3Increase in circulation 2.5 4.0 9.0 14.3 -8.9 -4.3 4.8 0.8 5.2Total consumption 44.0 43.1 40.6 33.5 25.3 26.5 36.9 12.3 16.5

NIS 200 Wear and tear 7.4 9.9 10.8 7.8 13.2 14.3 14.1 8.2 5.7Increase in circulation 4.3 14.3 21.9 26.8 21.6 22.5 24.7 12.5 24.3Total consumption 11.7 24.2 32.7 34.6 34.8 36.8 38.8 20.7 30.1


-100

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2006 2007 2008 2009 2010 2011 2012 2013 2014

NIS 200 banknote

Wear and tear Growth in circulation


figure 8Increase in circulation and wear and tear, 2006–14

(millions of banknotes, year end)

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e. Deposits and withdrawals of banknotes at the Bank of Israel

The increase in circulation is the difference between withdrawals from the Bank of Israel and deposits with the Bank of Israel. In 2014, 173 million banknotes were withdrawn, including original banknotes from the printer and banknotes that were found fit for re-use during the counting and sorting process at the cash centers and at the Bank of Israel. In total, 140 million banknotes were deposited, including worn banknotes that are not fit for circulation, and surplus. The greatest change in total deposits and withdrawals was in the NIS 50 denomination, due to the change in series of this denomination.

3. coins in circulation

a. The value and quantity of coins in circulation

In 2014, as in recent years, coins in circulation accounted for 3 percent of total currency in circulation, totaling NIS 1.9 billion. The increase in the value of coins in circulation was 7 percent, similar to the average over the previous ten years. The number of coins in circulation increased by 5 percent, totaling 2.1 billion coins at the end of 2014.

A not insignificant proportion of coin consumption is due to coins being lost by the public, as a result of low attention paid to the coins, or coins being left in unused containers, so that actual consumption is less than the recorded figures. This loss is quite natural, occurring in all countries. The proportion of coins lost is inversely related to the value of the coin, since coins with a higher value are treated more carefully by their owners. Losing coins causes an unnecessary increase in the issuance costs of the coins. The Bank of Israel calls on the public to use the coins in its possession, or to deposit them in exchange for their value in banknotes, either at the Bank of Israel (according to the exchange rules published on the Bank of Israel’s website) in the banking system, or at the post office.

b. Deposits and withdrawals of coins at the Bank of Israel

Forty-two million coins were deposited at the Bank of Israel in 2014, and 147 million were withdrawn. Both the volume of deposits and the volume of withdrawals declined significantly in 2014. The main explanation for this is the decline in the volume of deposits and withdrawals of the 10 agorot coin. These coins constitute 59 percent of the number of coins in circulation, and serve mainly to provide change on urban public transit routes. Since the public transit fares were raised from NIS 6.60 to NIS 6.90 in January 2014, the consumption of coins of this denomination declined accordingly.

In view of the effect of public transit fares on the volume of consumption of coins, the Currency Department is prepares for rate changes in conjunction with the Ministry of Transportation.

Table 4: Currency deposits and withdrawals at BOI by denomination, 2007–14 (millions of banknotes)

Deposits Withdrawals

2007 2008 2009 2010 2011 2012 2013 2014

Rate of change in 2014 2007 2008 2009 2010 2011 2012 2013 2014

Rate of change in 2014

NIS 20 16 22 12 5 9 13 19 19 1% 18 28 13 11 8 13 20 19 -5%NIS 50 44 48 37 37 30 28 30 41 37% 45 46 42 35 28 33 30 44 47%NIS 100 89 78 58 48 40 39 46 47 1% 92 87 72 39 36 43 47 52 10%NIS 200 23 27 27 25 24 24 33 33 -1% 38 49 54 46 47 49 46 58 25%Total 172 175 134 115 103 104 129 140 9% 93 210 181 131 119 139 144 173 21%Source: Currency Department.

Table 5: Value of coins in circulation by denomination, 2007–14 (nIs million)

2007 2008 2009 2010 2011 2012 2013 2014 Rate of change in

20145 ag. 11 10 1010 ag. 82 88 92 99 102 112 120 125 4%NIS 0.5 56 59 61 65 71 70 74 79 7%NIS 1 368 369 376 392 411 432 455 481 6%NIS 2 7 45 70 81 88 100 114 122 8%NIS 5 258 265 280 300 319 336 365 389 7%NIS 10 429 452 486 524 566 604 669 717 7%Total 1,212 1,287 1,375 1,461 1,557 1,653 1,795 1,914 7%SOURCE: Currency Department.

Table 6: number of coins in circulation by denomination, 2007–14 (millions of coins)

2007 2008 2009 2010 2011 2012 2013 2014 Rate of change in

20145 ag. 11 10 1010 ag. 821 880 923 985 1,023 1,117 1,196 1,249 4%NIS 0.5 112 117 121 129 141 141 148 159 7%NIS 1 368 369 376 392 411 432 455 481 6%NIS 2 4 23 35 41 44 50 57 61 8%NIS 5 52 53 56 60 64 67 73 78 7%NIS 10 43 45 49 52 57 60 67 72 7%Total 1,616 1,693 1,763 1,659 1,740 1,867 1,996 2,101 5%SOURCE: Currency Department.

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In 2014 as well, the downward trend in total coin deposits and withdrawals continued, against the background of the implementation of the coin handling policy starting in May 2011, which requires the cash centers to sort and recycle surplus coins in the economy.

D. changes In BanknoTes anD coIns In cIrculaTIon

On September 16, 2014, the new NIS 50 banknote was put into circulation as the first of Israel’s new series of banknotes, bearing the signature of Bank of Israel Governor Dr. Karnit Flug.

The banknote was distributed to the public through the commercial banks, ATMs, and branches of the post office.

There were no other changes to the features of banknotes and coins in circulation.

e. counTerfeIT BanknoTes anD coIns

1. anti-counterfeit action and tracing counterfeit money

As in other countries, there are attempts in Israel to counterfeit currency. The proportion of counterfeit notes found in circulation in 2014 was 0.0027 percent, a

lower proportion than in the eurozone, where the figure was 0.0048 percent. In 2014, the proportion of counterfeit coins was 0.01 percent of all coins in circulation. As expected, in 2014 as well, most of the counterfeits were of the higher denominations—NIS 100 and NIS 200 notes, and NIS 5 and NIS 10 coins.

These figures represent a tremendous improvement in detection of counterfeits over the past three years as a result of the stringent requirements in the Bank of Israel’s regulations under its new cash handling policy. Under the policy, the commercial banks have procured sophisticated counting and sorting machines that were approved by the Bank of Israel as capable of detecting counterfeits. The commercial banks are obligated

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figure 910-agorot coins: consumption and number of coins necessary for

providing change on public transit, 2004–14

Coins necessary for change - "Egged" Coins necessary for change - "Dan" Consumption

Num

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Consumption: Aggregate consumption in the half-year elapsed between each update of the public transit trip price. Number of 10 agrot coins necessary for providing change: For instance, four coins where the trip price is NIS 6.60. Note: In recent years, the urban trip price is identical on lines belonging to the "Kavim", "Metropolin" and "CityPass" operators as well.SOURCE: Currency Department.

Table 7: Deposits and withdrawals of coins at BOI by denomination, 2006–14 (millions of coins)

Deposits WithdrawalsDenomination 2006 2007 2008 2009 2010 2011 2012 2013 2014 2006 2007 2008 2009 2010 2011 2012 2013 20145 ag. 5 5 10 4 3 14 13 0 0 010 ag. 50 51 50 48 49 58 55 46 27 101 97 108 92 111 96 149 125 80NIS 0.5 9 10 9 9 8 12 11 4 3 16 16 13 13 15 25 10 12 14NIS 1 34 35 31 22 15 20 16 12 7 60 60 31 29 31 39 37 34 34NIS 2 0 0 1 2 5 5 4 3 1 0 4 20 15 11 9 10 10 6NIS 5 9 10 9 7 6 7 5 8 2 13 13 11 10 10 11 8 14 7NIS 10 7 6 7 4 5 5 3 5 2 11 10 9 8 9 9 7 12 7Total 115 119 116 97 91 108 94 78 42 215 212 193 167 187 189 221 206 147SOURCE: Currency Department.

11 איור(אחוזים)

10 ag.64%

NIS 0.57%

NIS 116%

NIS 23%

NIS 55%

NIS 105%

Deposits 10 ag.NIS 0.5NIS 1NIS 2NIS 5NIS 10

10 ag.55%

NIS 0.59%

NIS 123%

NIS 24%

NIS 55%

NIS 104%

Withdrawals 10 ag.NIS 0.5NIS 1NIS 2NIS 5NIS 10

figure 10Deposits and Withdrawals of Coins at the Bank of Israel, by Denomination, 2014


3332

to check for counterfeits before releasing banknotes and coins for circulation, including the notes used to fill the ATMs. Due to these examinations, the volume of counterfeits detected by the commercial banks during counting and sorting rose substantially. Within the framework of the counting and sorting process, all notes and coins deposited at the Bank of Israel by the commercial banks and the general public are rigorously tested by the Bank for counterfeits.

In addition to the increase in detection of counterfeits by the commercial banks, further evidence of the removal of counterfeits from circulation is the absence of complaints filed with the Public Enquiries Unit of the Banking Supervision Department regarding counterfeit notes withdrawn from ATMs, since banknotes withdrawn from ATMs must be examined by sophisticated machines before being loaded into the ATMs. Any cash suspected of being counterfeit is transferred to Israel Police, which under the penal law is charged with combating forgeries.

Under the Penal Law, 5737–1977 (Chapter 12, Section 484), if a State employee, Bank of Israel employee, or commercial bank employee who receives a currency note or coin has reasonable grounds to believe that it is counterfeit, he or she is obligated to seize it and deliver it to the police forthwith for investigation. (Catching the offenders responsible for forgeries and for distributing counterfeits is one of the Israel Police’s legal responsibilities).

The Penal Law, 5737–1977 (Chapter 12) prescribes penalties for counterfeiting, replicating money, possessing materials for counterfeiting, and the illegal issue of money. The penalty for these violations is up to seven years imprisonment, depending on the violation.

In its struggle against currency counterfeits, the Bank of Israel’s Currency Department works at several levels:

· Through a special forum that includes representatives of the police, the commercial banks and the Association of Banks in Israel, as well as representatives of the Department. The objective of the forum is to increase coordination and information sharing among all relevant parties.

· The cash handling policy: The commercial banks are required to take action to prevent the recirculating counterfeit coins and notes. Among other provisions, the commercial banks were obligated to purchase state-of-the-art sorting and counting machines capable of identifying counterfeits.

· Security features: As part of its preparations for the issuance of the new series of banknotes, the Currency Department is taking action to upgrade the security features that will appear on the banknotes. These features are selected taking several factors into account: the difficulty of counterfeiting, the ease with which the general public can identify counterfeits, production costs, durability of the

features and its effect on the lifespan of the note, and the ability of vending machines and money changing machines to identify the note without disruption.

Three categories of security features appear on the notes: security features for the public, security features for cashiers that can be identified when the proper devices are used, and security features that can be read by the sorting and counting machines used by the commercial banks and the Bank of Israel.

Enhancing public awareness: Since the public plays a vital role in preventing the distribution of counterfeit money, the Currency Department acts to enhance the public’s awareness of the security features. Accordingly, the Bank of Israel has upgraded the relevant information appearing on its Internet site and has published brochures outlining the principal security features that help identify counterfeit banknotes. These brochures can be obtained through the Currency Department. Information on the security features is also available on the Bank of Israel’s website at: http://www.boi.org.il/en/currency

· The public must be alert to attempts at counterfeits, since counterfeit notes obviously will not be exchanged, and the loss will be borne entirely by the holder. The public must therefore check the security features on the notes and coins they receive. Notes suspected as counterfeit must by law be given to the police.

http://www.boi.org.il/en/currency

3534

2. How to identify an authentic Series B banknote

The denomination of the note, printed

in large numbers in transparent ink, appears and disappears when the note is held at different angles.In a counterfeit note, the numbers do not disappear.

Two triangles, one on each side

of the note, together produce a precise Star of David when the note is held against the light.In a counterfeit note, there are imprecisions.

The note has an image of a triangle

made up of ten small squares which change color when the note is tilted. In a counterfeit note, the squares do not change color.

1 42 3

28

(ג) מותר להשתמש בתצלום של שטר כחלק מעיצוב או כחלק מפרסומת, ובלבד שמתקיימים

כל התנאים הבאים:

המידות של תצלום השטר (האורך והרוחב) יהיו גדולות או קטנות ב-30 אחוזים לפחות (1

ממידות שטר כסף אמיתי.

אין לצלם או להדפיס שטר בתצלום אחד דו-צדדי. (2

אין לשנות אלמנטים בעיצוב שטר, ואין להוסיף לצילום אלמנטים, למעט טקסט למטרות (3

פרסומת, קריקטורה או כיו“ב.

תצלום של שטר יכול להיות בשחור-לבן או בצבעים, אולם בתצלום צבעוני על הצבעים (4

להיות זהים לצבעי השטר המקורי.

(ד) מותר להציג תצלום של שטר בקטלוג, ספר, עבודת מחקר וכד‘, בתנאי שיצוין בהם כי זכויות

היוצרים שמורות לבנק ישראל, ותוך קיום כל התנאים המפורטים בסעיף 2 (ג). (זאת בשינוי אחד

– בסעיף ג‘ (3) יש להשמיט את הסייג ”למעט טקסט למטרות פרסומת, קריקטורה או כיו“ב“.

2. סימנים לזיהוי שטר מזויף

28














28














Metalthread

28














28














An exact image of the personage featured on

the note can be seen when the note is held up to the light, and next to it a small circle enclosing his initial. In a counterfeit note, this watermark is either missing, or unclear.

These security features appear on all genuine banknotes

Further information about the security features can be found on the Bank of Israel website: http://www.boi.org.il/en/currency/BanknoteSecurityFeatures

Box 3: guidelines on the use of photocopies and replicas of banknotes and coins

1. general

(a) The following guidelines are intended to prevent misleading of the public, to ensure that the currency is treated with due respect, and to maintain the Bank of Israel’s copyright.

(b) In these guidelines, a coin or banknote shall mean a coin or banknote that was or is legal tender in Israel.

(c) In these guidelines, a replica of a coin or banknote shall mean a reproduction or photocopy of a coin or banknote, in print or in any other form.

(d) In these guidelines, a replicated coin or banknote shall mean an item that is generally similar in design to a coin or banknote—for example that displays an image resembling a banknote or specifies a monetary value such as “NIS 10”.

(e) Furthermore, coins and banknotes must not be debased—by photocopying or in any other way.

2. guidelines

(a) The distribution of a replica of a coin or banknote in the form of a coupon, voucher or similar is prohibited.

(b) A coupon, voucher or similar resembling a coin or banknote may be distributed, provided that the coupon or voucher is at least 30 percent larger or smaller in size than the coin or banknote.

(c) A replica of a coin or banknote may be used as part of a design or advertisement provided that all of the following conditions are met:

1) The dimensions of the replica coin or banknote must be at least 30 percent larger or smaller than a real coin or banknote.

2) A photocopy or printing of a coin or banknote must not appear on both sides of the replica.

3) Elements of the design of the coin or banknote must not be changed, and no features other than text for advertising purposes, shall be added to the replica.

3736

4) A replica of a coin or banknote may be black-and-white or color; however, the colors in a color replica must be the same as those of the real coin or banknote.

(d) A replica of a coin or banknote may appear in a catalogue, book, research paper, etc., provided that they cite the Bank of Israel’s copyright, and that they meet all the conditions listed in Section 2(c) (with one change: In Section 2(c)3, the words “other than text for advertising purposes” shall be omitted).

This information also appears on the Bank of Israel’s website at www.boi.org.il/en/currency.

Box 4: Bank of Israel regulations concerning damaged currency

General explanations:

Section 45(f) of the Bank of Israel Law, 5770-2010, authorizes the Governor to determine “provisions for the withdrawal from circulation of currency damaged through use or destroyed and for its replacement under the conditions prescribed in the regulations; rules regarding the fee that the Bank shall charge for such replacement shall be determined with the approval of the Knesset Finance Committee”.

Consequently, in July 2010, new directives took effect—the Bank of Israel (Withdrawal from Circulation or Replacement of Currency Damaged through Use or Destroyed) Rules, 5770-2010. These directives replaced the Bank of Israel (Replacement or Withdrawal from Circulation of Currency Damaged through Use or Destroyed) Regulations, 5715-1955, which were promulgated pursuant to Section 34 of the Bank of Israel Law, 5714-1954.

The new rules were adapted to the present times, and allow damaged or destroyed currency of amounts up to NIS 1,500 to be sent to the Bank by post. The amount is then credited directly to the customer’s bank account. Other problems that the Bank has encountered over time and that required secondary regulation were also addressed, for example: definition of the term “through use”, adapting the application form for changing currency, and the possibility of replacing money that was destroyed in an accident solely on the basis of evidence, without the remnants of the currency.

Under the rules, no fee is charged for exchanging currency damaged through use or destroyed.

Damaged currency can be replaced free of charge at the Bank of Israel Cashier’s Desk at 2 Kaplan Street, Jerusalem, Sunday through Thursday between 8:00 am and 1:00 pm, or sent by registered mail to the Bank of Israel, Currency Department, Cash Desk, POB 780, Jerusalem, 91007.

For more information on replacing damaged currency, please contact the Currency Department’s Cashier’s Desk of the Currency Department at 02-655-2847.

Bank of Israel (Withdrawal from Circulation or Replacement of Currency Damaged through use or Destroyed) rules, 5770-2010

By virtue of his powers under Section 45(f) of the Bank of Israel Law, 5770–20101, the Governor has prescribed the following rules:

1. In these rules “through use”–not through deliberate action or gross negligence.2. The Bank will replace, with the equivalent legal tender, currency damaged

through use it more that is of full size.3. The Bank will replace, with the equivalent legal tender, currency damaged

through use if more than half of the coin/banknote is presented, in one or several pieces, provided that the Bank is satisfied that the pieces are all part of the same currency.

4. a. The Bank will replace currency damaged through use that is presented to it as a half banknote/coin in one or several pieces, with the equivalent legal tender, one year after the currency is presented, provided that both the following conditions are met:

1) The Bank is satisfied that the pieces are part of the same coin or banknote;2) The Bank does not receive the second half of the coin or banknote during

the aforementioned year. b. The Bank will not replace half a banknote/coin that is produced once it has

already replaced half as noted in sub-section (a). The Bank may seize this half banknote/coin and withdraw it from circulation.

5. a. The Bank may seize less than half a banknote/coin that is produced as currency damaged through use and withdraw it from circulation.

b. If the Bank refuses to replace more than half a banknote/coin of currency that is damaged through use, the Bank may seize the currency and withdraw it from circulation from ninety days after sending such notification to the applicant, unless the applicant submits a written request to the Bank during this period asking to repossess the banknote/coin.

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c. If the Bank receives a request of this nature, as noted in sub-section (b), it will send the banknote or coin to the applicant’s address by registered mail. Confirmation of receipt of the registered mail shall be conclusive evidence of delivery.

6. The Bank may replace the destroyed currency with the equivalent legal tender, provided that it is satisfied that both of the following conditions have been met;a. The currency was destroyed accidentally. b. Remnants of the currency were produced, and the Bank is satisfied that the

rest of the banknote/coin was entirely destroyed, or the Bank received other evidence persuading it that the currency was totally destroyed.

7. a. A person who wishes to replace currency that is damaged or destroyed shall pursue one of the following courses:

1) Submit the form in the Appendix to the Bank of Israel Cash Desk in Jerusalem, and attach the damaged currency or remnants of the destroyed currency or any other evidence confirming that the currency was totally destroyed;

2) Send a request to the Bank at the following address: Bank of Israel, Currency Department Cash Desk, POB 780, Jerusalem, 91007, by registered mail, attaching the form mentioned in part (1), the damaged currency or remnants of the destroyed currency, or any other evidence confirming that the currency has been totally destroyed, and also specifying the number of the applicant’s bank account at a commercial bank.

b. A request sent under sub-section (a)(2) shall involve a sum of up to NIS 1,500, and the applicant shall be responsible for its contents until the Bank opens the request and clarifies its contents.

c. Should a request be submitted pursuant to sub-Section (a) and the Bank accede to it, the Bank shall replace the damaged or destroyed currency at the Bank’s cash desk or it shall credit the requester’s bank account at a commercial bank as per the details provided by the applicant in the request, at its discretion

8. The Bank of Israel (Replacement or Withdrawal from Circulation of Currency Damaged through Use or Destroyed) Regulations, 5715-1955, are null and void.

appendixsection 7(a) -

application form for replacing damaged or mutilated currency as per Bank of Israel regulations

To:The Bank of Israel, Currency Department—Cash DeskPOB 780, Jerusalem 91007By registered mail / delivery in person

1. applicant’s detailsThe applicant (surname and first name) ..............................................................I.D. no. / passport no. and country in which the passport was issued:.................Applicant’s address (city, neighborhood, street, number, zip code).....................Home phone no. / mobile no. / email: .................................................................

2. Details of damaged banknotes or coins: Number of damaged banknotes and coins face value Serial number/s * Amount in NIS

NIS 20 NIS 50 NIS 100

NIS 20010 agorot

NIS 0.5 NIS 1NIS 2NIS 5NIS 10

Total Total* If requesting more than one banknote of the same denomination, please include a list of the numbers of all

the banknotes to be replaced.

3. Circumstances in which the currency was damaged or mutilated, what happened to other parts of the banknote or coin that were not produced together with the application (please provide full details):______________________________________________________________

4. Bank account details:When sending currency by registered mail, or as requested by the Bank when delivering currency at the Cash Desk, please also provide the applicant’s bank account details:Bank name: ______ branch name: ______ branch number: ______ account number: _____

5. DeclarationI hereby declare that all the information in this application is correct, and I state that I am the owner of the account to be credited. Date: _______ Applicant’s signature: _____________* The form may be printed from the Bank of Israel’s website:

http://www.boi.org.il/en/currency/LegislationandRegulation

http://www.boi.org.il/en/currency/LegislationandRegulation

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f. coMMeMoraTIVe coIns

As in previous years, the Bank of Israel issued five commemorative coins in 2014, in five different series.

a. Independence Day series coin, 5774–2014 – “national Water system”

The commemorative coin in honor of the 66th anniversary of the State of Israel was dedicated to the National Water System.

In a region where water is scarce and demand for the precious resource is constantly increasing, the State of Israel excels in optimizing the use of water resources. In 2014, the State of Israel celebrated the 50th anniversary of the dedication of the National Water Carrier, the main artery in the State of Israel’s water system. The National Water Carrier begins at the Sea of Galilee, and traverses about 130 km. It serves to regulate the supply of water in Israel, and enables the efficient use of water resources and their transfer from the rainy north to the arid south and center of the country.

As part of the solution to the population’s growing water needs, the State of Israel desalinates sea water, currently desalinating 300 million cubic meters per year.

The obverse side of the coin portrays an artistic illustration of the outline of Israel’s coast and the path of the water carrier running from north to south. It ends with five

Box 5: Defaced currency

The Penal Law

If a person maliciously defaces, tears, cuts or otherwise mutilates a currency note that is legal tender in Israel, he shall be liable to three months imprisonment (Penal Law, 5737–1977, Chapter 12, Section 466).

If a person defaces a coin by stamping a name or word on it, or if he maliciously melts down a coin, he is liable to one year imprisonment (Penal Law 5737–1977, Chapter 12, Section 480).

The Currency Department takes action to uproot the practice of writing on banknotes, common among many businesses, merchants, and cashiers. This practice is considered currency defacement, and is prohibited under the Penal Law. When a banknote of this kind is found, the Bank of Israel withdraws it from circulation, leading to higher issue costs.

leaves, symbolizing the five decades of the National Water Carrier and its contribution to the vision of “making the desert bloom”. The five pipe lines rising from the sea reflect the five decades of water accomplishments and the new source for water supply, Israel’s new desalination plants.

The following text appears on the margin of the coin:

Hebrew: מפעל המים הלאומי

English: NATIONAL WATER SYSTEM

Arabic: مشروع المياه الوطني

The reverse side of the coin contains the text:

Hebrew: יום העצמאות התשע“ד

English: Independence Day 2014

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Regular items also appear on the reverse: the nominal value in Hebrew and English, the emblem of the State of Israel, the word “Israel” in Hebrew, English, and Arabic, and the mint mark.2

The coin was designed by Mr. Ruben Nutels, who won the design competition.

The coin was issued in May 2014 in two silver versions and one gold version.

b. Biblical art series coin, 5774–2014 – “Jacob’s Dream”

The “Jacob’s Dream” coin in the Biblical Art Series is dedicated to the biblical story of Jacob’s dream, as described in the book of Genesis, Chapter 28: on Jacob’s trip northeast from Be’er Sheva to Haran, he lay down to sleep in the area of Luz and dreamed of “a ladder set up on the earth, and the top of it reached to the heaven, and behold the angels of G-d ascending and descending on it.”. In the dream, G-d appears to Jacob and promises him and his descendants the land upon which he is lying. Jacob wakes up in the morning deeply moved by the dream, declares that this is the house of G-d, and calls the place Beit El. He erects a monument at the site from the stone upon which he had laid his head, and promise that if G-d watches over and protects him, he will set this place as the house of G-d and will tithe all of his belongings to G-d.

2 The mint mark denotes the coin’s standard of finish. A miniature Star of David is imprinted on coins with proof-like finish, and a miniature Hebrew letter “mem” on coins with a proof finish.

The obverse side of the coin portrays an image of a sleeping Jacob dreaming of the ladder placed on the earth with its top in the heaven, and three angels ascending and descending on it.

A decorative element in the shape of a ladder, symbolizing the ladder that appeared in Jacob’s dream, is depicted on the reverse side together with the text:

Hebrew: חלום יעקב בראשית כ“ח

English: JACOB’S DREAM GENESIS 28

Arabic: 28 حلم يعقوب التكوين

Regular items also appear on the reverse side: the face value in Hebrew and English, the emblem of the State of Israel, the mint year, the word “Israel” in Hebrew, English, and Arabic, and the mint mark.

The coin was designed by Mr. David Harel, who won the design competition.

The coin was issued in December 2014 in two silver versions and two gold versions.

Details: Independence Day series coin, 5774–2014, “National Water System”

Silver proof-like Silver proof Gold proofNominal value NIS 1 NIS 2 NIS 10

Metal Silver 0.925 Silver 0.999 Gold 0.917Copper 0.075 Copper Silver 0.040

Copper 0.043Weight 14.40 grams 31.10 grams 16.96 gramsDiameter 30 mm 38.7mm 30mmEdge Smooth Milled MilledDesigner: Ruben NutelsTooling and minting: Israel Coins and Medals Corporation, Israel

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c. Views of Israel series coin, 5775–2014 – “Hula Nature Reserve”

In 2012, the Bank of Israel decided to issue a new series of commemorative coins: the Views of Israel series. As part of this series, coins will be issued depicting beautiful and unique nature sites and vistas that arouse great interest in Israel and abroad. It was decided to dedicate the third coin in the series to the Hula Nature Reserve, to mark the 50th anniversary of the first nature reserve in Israel. The Hula Reserve is situated in the south of the Hula valley, which was established through the draining of the Hula swamps and lake in order to create arable land and agricultural fields. Scientists and nature lovers in Israel acted vigorously to protect at least part of the lake’s vistas, and an area of about 800 acres was dedicated as a nature reserve.

The Hula Nature Reserve was officially declared in 1964 as Israel’s first nature reserve. As opposed to other nature reserves, it does not protect the natural state as it was when it was established, but was created through earthen dikes and sluices to create an artificial lake.

Tens of thousands of birds, including cranes, storks, pelicans, cormorants, egrets and herons pass over the reserve and benefit from the lake, the swamps, and the abundance of food. The reserve also serves as a place for cultivation of rare aquatic vegetation such as the yellow iris, the papyrus sedge, and the white lotus.

The obverse side of the coin depicts a crane standing in a body of water alongside vegetation typical of the Hula reserve, with a mountain view and three birds in flight in the background, together with the text:

Hebrew: שמורת החולה

English: HULA NATURE RESERVE

Arabic: محمية الحولة

The reverse depicts a papyrus sedge (NIS 10 coin and NIS 1 coin) or two cranes in flight (NIS 2 coin).

Regular items also appear on the reverse: the nominal value in Hebrew and English, the emblem of the State of Israel, the mint year, the word “Israel” in Hebrew, English, and Arabic, and the mint mark.

The coin was designed by Ms. Tovit Uriel, who won the design competition.

The coin was issued in December 2014 in two silver versions and one gold version.

Details: Biblical Art series coin, 5774–2014, “Jacob’s Dream”

Silver proof-like Silver proof Gold proof Gold proof*Nominal value NIS 1 NIS 2 NIS 10 NIS 1

Metal Silver 0.925 Silver 0.999 Gold 0.917 Gold 0.999Copper 0.075 Copper Silver 0.040

Copper 0.043Weight 14.40 grams 31.10 grams 16.96 grams 1.244 gramsDiameter 30 mm 38.7mm 30mm 13.92mmEdge Smooth Milled Milled MilledDesigner: David HarelEngraving: Tidhar DaganTooling and minting: Mint of Holand.This coin has a small diameter. Therefore, minor design adjustments were necessary *

4746

d. World heritage sites series coin, 5774–2014 - “Tel hazor”

Due to its importance as a biblical site, Tel Hazor was recognized by UNESCO as a World Heritage Site in 2005.

Tel Hazor is the largest, and among the most important, biblical-era archaeological sites in Israel. The city of Hazor is mentioned in a number of contexts in the books of Joshua, Judges, I Kings and II Kings.

During archaeological excavations, the glory of the Canaanite city with its palaces and temples, as well as a wealth of findings from daily life, were uncovered.

The coin’s obverse depicts a basalt lion orthostat and the royal fortress gate. It also depicts the UNESCO and World Heritage Sites Emblems, together with the text:

Hebrew: תל חצור English: TEL HAZOR

Arabic: تل حاصور

The reverse side contains a design element depicting an altar.

Regular items also appear on the reverse: the nominal value in Hebrew and English, the emblem of the State of Israel, the mint year, the word “Israel” in Hebrew, English, and Arabic, and the mint mark.

The coin was designed by Mr. Eitan Hendel (obverse) and Mr. Gideon Sagi (reverse), who won the design competition.

The coin was issued in May 2014 in two silver versions and one gold version.

Details: Views of Israel series coin, 5775–2014, “Hula Nature Reserve”


Metal Silver 0.925 Silver 0.999 Gold 0.917Copper 0.075 Copper Copper 0.043

Silver 0.040Weight 14.40 grams 31.10 grams 16.96 gramsDiameter 30 mm 38.7mm 30 mmEdge Smooth Milled MilledDesigner: Tovit UrielTooling and minting: Israel Coins and Medals Corporation, Israel

4948

e. coin in the Jerusalem of gold bullion series, 5774–2014 – The hurva synagogue

The fifth coin in the Jerusalem of Gold bullion series is dedicated to the Hurva synagogue. The coin has a NIS 20 nominal value, and contains one ounce (31.1035 grams) of fine gold (.9999).

What is a bullion coin?

A bullion coin is a gold, silver or platinum coin that contains a specific weight of precious metal (stamped on the coin face). The sale price to the public usually includes a premium lower than that applied to ordinary commemorative coins.

The Bank of Israel began issuing bullion coins in 2010. By issuing the gold bullion coins, Israel joins the ranks of important countries such as the US, Canada, the UK, Australia, South Africa, Austria, and China, all of which issue new bullion coins every year. Some of these countries change only the year of issue; others change the design of one side of the coin without changing the subject of the coin series.

In Israel, the obverse side of the coin has a permanent design throughout the entire series, depicting a roaring lion that originated in an ancient Israelite seal found in Megiddo. Also on the obverse are the emblem of the State of Israel and the word “Israel” in Hebrew, English, and Arabic.

The reverse expresses the subject of the series – Jerusalem of Gold and the design varies on each coin.

Details: World Heritage Sites series coin, 5774–2014, “Tel Hazor”


Metal Silver 0.925 Silver 0.999 Gold 0.917Copper 0.075 Copper Silver 0.040

Copper 0.043Weight 14.40 grams 31.10 grams 16.96 gramsDiameter 30 mm 38.7mm 30mmEdge Smooth Milled MilledDesigner: Eitan Hendel and Gideon SagiEngraving: Tidhar DaganTooling and minting: Mint of Norway

The reverse side of the fifth coin in the series depicts the Hurva synagogue, which is located in the heart of the Jewish Quarter of the Old City of Jerusalem. From the date of its rededication in 1864, the “Hurva” became the largest, most splendid and most important synagogue in Israel, and a center of life in the Jewish Quarter. It was the site of the installation of the Chief Rabbis of Israel and of Jerusalem.

During the War of Independence, following the fall of the Jewish Quarter, the synagogue was blown up by the Jordanians, destroyed for the second time. Following the Six Day War it was restored as an archaeological site. The arch of the northern wall was restored and became one of the symbols of the resettlement of the Jewish Quarter.

The government of Israel decided to rebuild the synagogue, and its reconstruction was completed in 2010. At a celebratory prayer service at the Hurva, the flag of the Jewish Brigade that fought in World War II was placed for safekeeping at the site from which the call went out to save the Jews of Europe.

Regular items and writing also appear on the reverse side: the inscription “Jerusalem” in Hebrew, English and Arabic; the words, “1 oz. fine gold .9999” in Hebrew and English; the nominal value in Hebrew and English; the mint year; and the mint mark.

The coin was designed by Mr. Meir Eshel (obverse) and Mr. Yaakov Anidi (reverse).The coin was issued in June 2014, in one gold proof version.

Details: Jerusalem of Gold bullion series coin, 5774–2014, “Hurva Synagogue”

BU, goldNominal value NIS 20Metal .9999 Fine GoldWeight 31.1035 gramsDiameter 32 mmEdge SmoothDesigner: Meir Eshel, Yaakov AnidiEngraving: Tidhar DaganTooling and minting: Royal Dutch Mint

5150

g. puBlIc coMMITTee for The plannIng of BanknoTes, coIns anD coMMeMoraTIVe coIns

a. composition of the committee

The Committee, which is appointed by the Governor, advises her on all matters pertaining to the subjects, motifs and design of banknotes, coins and commemorative coins. The Committee’s members include experts in legal matters, archaeology, numismatics, art, education, the Bible, etc., as well as media experts, architects and designers.

The Chairman and other representatives of the Israel Coins and Medals Corporation attend Committee meetings as observers.

Serving members of the Committee in 2014 were:

Chair - retired Supreme Court Judge Jacob Turkel

Mr. Dov Genachowski

Dr. Haim Gitler – membership ended in December 2014

Mr. David Kroyanker

Mr. Gideon Lerman

Dr. Edina Meyer

Ms. Sari Ras Birron

Prof. David Rosenthal

Ms. Gila Schakhine

A subcommittee consisting of certain members of the Committee operates alongside the Committee. The subcommittee assists the Currency Department in guiding the artists in the preparation of the final design of coins and banknotes, in accordance with the decisions of the Committee. The members of the subcommittee are Mr. Gideon Lerman, Dr. Haim Gitler, and Ms. Gila Schakhine.

b. The committee’s activity in 2014

In its function as the panel of judges for the artists’ proposals, the Committee selected the winners in four competitions:

The competition for the “Jacob’s Dream” coin in the “Biblical Art” series;The competition for the “Hula Nature Reserve” coin in the “Views of Israel” series;The competition for the “Spice Road - Ovdat” coin in the “World Heritage Sites” series;The competition for the “Solar Energy in Israel” coin in the “Independence Day

Series” in honor of the 67th anniversary of the State of Israel.

appenDIx: sTaTIsTIcal TaBles

Table a-1: currency in circulation and the cpI, 1990–2014

End of period balances (NIS million, nominal) Changes during the period (percent)

YearCash in

circulation Total banknotes CPI

Currency in circulation

Real Nominal1990 3,280 3,109 17.6 5.1 23.61991 3,784 3,595 18.0 -2.3 15.41992 4,793 4,575 9.4 15.8 26.71993 5,651 5,402 11.2 6.0 17.91994 6,453 6,167 14.5 -0.2 14.21995 7,915 7,489 8.1 13.5 22.71996 9,220 8,722 10.6 5.3 16.51997 10,370 9,809 7.0 5.1 12.51998 11,935 11,300 8.6 6.0 15.11999 15,605 14,905 1.3 29.0 30.72000 14,659 13,911 0.0 -6.1 -6.12001 16,858 16,045 1.4 13.4 15.02002 18,009 17,160 6.5 0.3 6.82003 19,137 18,240 -1.9 8.3 6.32004 20,783 19,817 1.2 7.3 8.62005 24,415 23,371 2.4 14.7 17.52006 25,544 24,409 -0.1 4.7 4.62007 28,971 27,752 3.4 9.7 13.42008 34,365 33,070 3.8 14.3 18.62009 41,495 40,112 3.9 16.2 20.72010* 44,833 43,365 2.7 5.2 8.002011 48,981 47,417 2.2 6.9 9.302012 54,773 53,112 1.6 10.0 11.802013 57,536 55,732 1.8 3.2 5.002014 63,194 61,272 -0.2 10.1 9.83* On December 31, 2010, Series A banknotes and the 5 agorot coins were removed from circulation. As of 2010, these banknotes and coins are not included in the year-end circulation data. This is true of both this table and those that follow.SOURCE: Currency Department; CPI - Central Bureau of Statistics.

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Table a-2: Means of payment in the economy, 1990–2014*

Year M1Cash held by the

publicCash held by the public as

a percentage of M-1(NIS million) (percent)

1990 6,377 2,760 431991 7,292 3,231 441992 9,848 4,022 411993 12,520 4,800 381994 12,373 5,408 441995 14,425 6,645 461996 16,255 7,754 481997 18,497 8,649 471998 20,629 10,007 491999 23,600 11,048 472000 25,443 12,077 472001 29,488 14,439 492002 31,015 15,553 502003 33,373 16,511 492004 39,861 17,999 452005 48,589 20,865 432006 52,587 21,422 412007 61,875 24,587 402008 72,608 29,919 412009 110,502 35,782 322010 115,319 38,521 332011 116,964 42,987 372012 126,970 48,837 382013 146,393 50,801 352014 198,765 56,818 29*End of year.SOURCE: Bank of Israel.

Table a-3: Banknotes in cirulcation by denomination, 1990–2014

Year Total NIS 200 NIS 100 NIS 50 NIS 20

Number of banknotes (millions of banknotes, year end)1990 54.0 12.2 31.0 10.91991 60.4 15.2 34.8 10.31992 69.3 3.7 15.2 38.7 11.71993 79.2 5.8 16.2 44.1 13.01994 88.5 7.7 17.2 48.9 14.71995 105.1 10.8 21.1 56.4 16.81996 112.1 13.1 32.4 49.6 17.01997 118.1 14.7 42.9 44.2 16.31998 132.3 16.9 53.3 44.0 18.01999 171.8 21.2 76.0 51.6 23.02000 157.7 18.9 76.0 41.6 21.22001 173.7 24.2 86.0 42.6 20.92002 181.0 27.4 91.8 41.1 20.72003 189.5 30.2 96.2 42.9 20.22004 203.6 33.4 104.8 43.6 21.82005 235.5 40.2 124.6 47.8 22.92006 241.3 44.4 127.0 46.4 23.52007 262.4 58.7 131.0 47.4 25.32008 297.2 80.7 140.0 46.0 30.62009 344.2 107.4 154.3 50.7 31.92010 357.1 128.9 144.9 47.9 35.42011 372.6 151.8 140.9 45.8 34.12012 408.0 176.5 145.7 51.1 34.72013 422.6 189.0 146.5 51.3 35.82014 455.1 213.3 151.7 54.5 35.6Value of banknotes (NIS million, year end)1990 2,985 1,218 1,550 2171991 3,466 1,519 1,740 2071992 4,437 749 1,519 1,935 2331993 5,257 1,166 1,624 2,207 2601994 6,002 1,547 1,715 2,445 2941995 7,419 2,151 2,111 2,822 3351996 8,681 2,621 3,238 2,482 3401997 9,774 2,948 4,291 2,209 3251998 11,262 3,371 5,330 2,201 3601999 14,874 4,231 7,601 2,581 4602000 13,880 3,778 7,599 2,079 4242001 15,986 4,835 8,604 2,128 4192002 17,129 5,484 9,176 2,054 4152003 18,209 6,040 9,620 2,145 4042004 19,777 6,680 10,480 2,181 4362005 23,348 8,040 12,460 2,390 4582006 24,374 8,883 12,700 2,320 471 2007 27,723 11,748 13,100 2,370 5052008 33,040 16,132 13,998 2,298 6122009 40,082 21,485 15,425 2,535 6372010 43,365 25,773 14,486 2,397 709 2011 47,417 30,356 14,090 2,288 683 2012 53,112 35,291 14,571 2,556 693 2013 55,732 37,798 14,652 2,567 716 2014 61,272 42,663 15,174 2,723 712 SOURCE: This table and the following tables - Currency Department.

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Table a-4: Distribution of circulation by denomination, 1990–2014

Year Coins NIS 200 NIS 100 NIS 50 NIS 20Distribution of number of banknotes (year end, percent)

1990 22.5 57.4 20.11991 25.1 57.6 17.11992 5.4 21.9 55.8 16.81993 7.4 20.5 55.7 16.41994 8.7 19.4 55.3 16.61995 10.2 20.1 53.7 15.91996 11.7 28.9 44.3 15.21997 12.5 36.3 37.4 13.81998 12.7 40.3 33.3 13.61999 12.3 44.2 30.0 13.42000 12.0 48.2 26.4 13.42001 13.9 49.5 24.5 12.12002 15.2 50.7 22.7 11.52003 15.9 50.8 22.6 10.72004 16.4 51.5 21.4 10.72005 17.1 52.9 20.3 9.72006 18.4 52.6 19.2 9.72007 22.4 49.9 18.1 9.62008 27.1 47.1 15.5 10.32009 31.2 44.8 14.7 9.32010 36.1 40.6 13.4 9.92011 40.7 37.8 12.3 9.22012 43.3 35.7 12.5 8.52013 44.7 34.7 12.1 8.52014 46.9 33.3 12.0 7.8

Distribution of value of circulation (percent)1990 4.9 38.8 49.4 6.61991 4.9 41.7 47.8 5.71992 4.5 14.1 32.7 41.7 5.01993 4.4 21.2 29.5 40.1 4.71994 4.4 24.6 27.3 38.9 4.71995 5.4 27.4 26.9 36.0 4.31996 5.4 28.6 35.3 27.0 3.71997 5.4 28.5 41.5 21.4 3.11998 5.3 28.3 44.8 18.5 3.01999 4.4 27.2 48.9 16.6 3.02000 5.1 25.8 52.0 14.2 2.92001 4.8 28.8 51.2 12.7 2.52002 4.7 30.5 51.1 11.4 2.32003 4.7 31.6 50.4 11.2 2.12004 4.6 32.2 50.5 10.5 2.12005 4.3 32.9 51.1 9.8 1.92006 4.4 34.9 49.8 9.1 1.82007 4.2 40.6 45.3 8.2 1.72008 3.7 47.0 40.8 6.7 1.82009 3.3 51.8 37.2 6.1 1.52010 3.3 57.5 32.3 5.3 1.62011 3.2 62.0 28.8 4.7 1.42012 3.0 64.4 26.6 4.7 1.32013 3.1 65.7 25.5 4.5 1.22014 3.0 67.5 24.0 4.3 1.1

Table a-5: Wear and tear and consumption of banknotes in circulation by denomination, 1990–2014a

Year Total NIS 200 NIS 100 NIS 50 NIS 20Consumption (millions of banknotes)1990 27.9 5.2 13.0 9.81991 27.2 5.9 12.5 8.81992 34.0 3.8 3.0 15.1 12.11993 35.4 2.2 3.7 18.1 11.41994 42.8 2.3 4.7 23.6 12.11995 53.6 3.8 8.1 25.2 16.51996 45.5 3.7 16.0 9.9 15.81997 36.8 3.0 16.3 6.4 11.01998 53.7 3.8 20.4 12.5 16.91999 61.5 6.3 24.8 23.9 6.52000 49.2 9.3 13.6 13.3 13.02001 60.8 6.5 24.2 17.1 13.02002 57.9 4.1 24.0 17.1 12.72003 63.8 3.9 25.5 23.0 11.42004 76.9 5.5 33.2 23.3 14.92005 89.5 9.6 42.9 23.2 13.92006 94.6 11.7 44.0 24.2 14.72007 102.2 24.2 43.1 21.2 13.72008 120.6 32.7 40.6 22.6 24.72009 98.8 34.6 33.5 25.4 5.32010 101.1 34.8 25.3 30.7 10.32011 89.9 36.8 26.5 21.8 4.82012 116.9 38.8 36.9 30.3 10.92013 51.1 20.7 12.3 10.9 7.22014 94.9 30.1 16.5 38.1 10.3

Wear and tear (millions of banknotes)1990 36.3 2.6 7.3 9.41991 30.1 2.9 8.2 9.01992 38.9 0.0 3.1 11.5 10.91993 32.4 1.0 2.8 13.1 10.01994 42.1 5.0 4.0 19.5 11.21995 37.2 0.9 4.2 17.7 14.41996 38.6 1.4 4.8 16.7 15.71997 30.9 1.4 5.8 11.9 11.81998 39.6 1.7 10.0 12.7 15.21999 22.0 2.0 2.2 16.3 1.52000 27.8 0.3 7.4 6.3 13.82001 42.7 0.7 13.7 15.5 12.82002 50.5 0.6 18.3 18.5 13.12003 55.5 1.1 21 21.2 12.22004 62.6 2.2 24.6 22.5 13.32005 57.7 2.8 23.0 19.0 12.82006 88.5 7.4 41.5 25.6 14.02007 81.1 9.9 39.1 20.2 11.92008 85.7 10.8 31.6 24.0 19.42009 51.7 7.8 19.2 20.7 4.02010 84.4 13.2 34.2 32.1 4.92011 75.0 14.3 30.9 23.8 6.02012 81.5 14.1 32.1 25.0 10.32013 36.5 8.2 11.5 10.7 6.12014 62.5 5.7 11.3 35.0 10.5a Data on consumption and wear and tear include Series A banknotes until and including 2010.

5756

Table a-6: coins in circulation by denomination, 1990–2014

(year end, millions of coins)

Year Total NIS 10 NIS 5 NIS 2 NIS 1 NIS 0.5 10 ag. 5 ag.a

1990 354.0 9.7 75.0 27.7 164.4 77.21991 398.0 12.0 86.0 30.0 185.0 85.01992 456.5 14.0 99.0 36.7 211.0 95.81993 533.3 15.9 115.1 37.1 260.8 104.41994 588.4 18.6 134.5 43.7 278.2 113.41995 668.5 10.9 20.5 148.1 51.5 316.8 120.71996 745.6 14.9 22.7 163.6 53.6 361.4 129.41997 817.9 17.4 25.6 178.7 61.7 396.4 138.11998 898.4 20.2 29.0 196.2 67.9 437.6 147.51999 983.6 22.6 32.0 215.5 70.6 486.3 156.62000 1,070.5 24.2 33.9 230.6 73.7 544.4 163.62001 1,149.6 26.7 37.1 247.2 79.9 588.3 170.32002 1,194.0 27.8 38.1 261.8 85.0 604.0 177.22003 1,249.3 30.0 39.7 274.0 88.8 633.3 183.52004 1,330.3 32.9 42.4 294.7 93.9 676.6 189.92005 1,422.7 36.2 45.1 317.8 99.9 724.3 199.42006 1,523.1 39.8 49.1 343.8 106.6 775.0 208.92007 1,612.6 42.9 51.5 3.6 368.4 112.4 821.1 216.22008 1,692.7 45.2 52.9 22.7 368.6 117.3 879.8 206.22009 1,762.8 48.6 55.9 35.0 376.1 121.5 923.2 202.52010 1,659.2 52.4 60.0 40.6 391.9 129.2 985.02011 1740.5 56.6 63.7 43.9 411.4 141.4 1023.42012 1867.4 60.4 67.2 49.8 431.9 140.6 1117.42013 1995.7 66.9 73.0 56.8 454.5 148.4 1196.12014 2100.5 71.7 77.8 61.1 481.5 159.0 1249.5a The 5 agorot coin was taken out of circulation at the end of 2010.

Table a-7: Deposit of banknotes at the Bank of Israel, 1990–2014a

YearTotal value of

deposits Total NIS 200 NIS 100 NIS 50 NIS 20

(NIS million) (thousands of banknotes)1990 3,747 83,352 9,871 43,021 30,460 1991 4,444 91,232 12,245 54,667 24,320 1992 5,110 98,914 1,435 12,973 61,171 23,335 1993 5,911 110,719 3,382 12,657 69,164 25,516 1994 6,936 124,743 4,874 14,507 80,123 25,239 1995 8,109 145,180 6,356 16,473 91,434 30,917 1996 10,277 178,055 8,344 30,436 92,628 46,647 1997 11,489 170,280 10,670 47,579 78,555 33,476 1998 11,898 163,969 10,977 58,458 65,536 28,998 1999 17,161 215,715 15,869 94,910 79,918 25,018 2000 18,637 225,548 22,239 96,408 80,346 26,556 2001 15,355 193,725 12,374 90,648 66,707 23,995 2002 16,485 201,475 14,533 98,891 64,269 23,783 2003 16,650 200,118 15,785 97,509 66,857 19,967 2004 14,409 174,206 13,708 83,972 57,994 18,533 2005 13,352 160,642 12,476 80,189 49,271 18,705 2006 17,429 198,467 17,105 109,687 53,514 18,160 2007 16,085 172,549 23,455 88,554 44,249 16,291 2008 16,005 175,159 26,696 78,434 47,560 22,470 2009 13,366 134,279 27,393 57,939 37,152 11,795 2010 11,712 114,780 24,755 48,311 36,531 5,183 2011 10,466 103,496 23,762 40,122 30,319 9,293 2012 10,360 103,754 24,233 38,517 28,072 12,933 2013 13,204 128,845 33,422 46,483 29,761 19,179 2014 13,774 140,489 33,224 46,982 40,854 19,429 a Data on deposits include Series A banknotes until and including 2010.

58

Table a-8: Deposit of banknotes at the Bank of Israel as a percentage of circulationa, 1990–2014 (percent)

Year NIS 200 NIS 100 NIS 50 NIS 201990 7.9 13.1 24.01991 7.0 13.3 18.91992 5.3 7.2 13.8 17.51993 6.0 6.9 14.1 17.31994 5.9 7.2 14.2 14.81995 5.9 7.3 14.2 16.31996 5.8 9.2 14.5 20.41997 6.4 10.4 14.0 17.01998 5.8 10.1 12.6 14.31999 8.1 13.1 15.9 10.52000 11.1 11.7 16.3 10.72001 4.8 9.3 13.3 9.82002 4.5 8.8 12.6 9.52003 4.5 8.5 13.0 8.42004 3.5 6.8 11.1 7.52005 2.8 5.8 9.2 7.12006 3.4 7.1 9.3 6.72007 3.7 5.8 7.7 5.82008 3.3 4.9 8.2 6.52009 2.4 3.2 6.5 3.22010 1.7 2.6 6.0 1.32011 1.4 2.4 5.5 2.22012 1.2 2.2 4.8 3.22013 1.5 2.6 4.7 4.52014 1.4 2.6 6.3 4.4a Calculated as an annual average of deposits as a percentage of circulation at the end of each month.

annual report 2014 - boi.org.il · pdf fileannual report 2014 bank of israel ... 2014, the new...

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