Which currency did Israel introduce in 1985 to replace the shekel?

Israel introduced the Israeli new shekel in 1985 to replace the shekel.

The change was part of an economic stabilization program designed to end Israel’s severe inflation. The new shekel replaced the inflation-weakened shekel at a rate of 1 new shekel for 1,000 old shekels. The Bank of Israel issued the new currency as prices and wages were being brought under tighter control.

The word “shekel” has ancient roots. It was a unit of weight and money in the ancient Near East and appears in the Hebrew Bible. Modern Israel first revived the name in 1980, when the Israeli pound was replaced by the shekel.

The Israeli new shekel is divided into 100 agorot. It is often shortened to NIS in English financial contexts. The currency is sometimes confused with the earlier shekel, but the 1985 reform explains the word “new” in its official name.