Which institution became Israel’s central bank when it began operating in December 1954?

The Bank of Israel became Israel’s central bank when it began operating in December 1954.

Israel was established in 1948, but its central-banking framework took several years to develop. The Bank of Israel Law was enacted in 1954, and the bank began operations on 1 December that year. Its first governor was David Horowitz.

The institution issues Israel’s banknotes and coins, conducts monetary policy, manages foreign-exchange reserves and contributes to financial stability. Its headquarters are in Jerusalem, while it also maintains offices in Tel Aviv.

The Bank of Israel is distinct from Bank Leumi, one of the country’s major commercial banks. Another important later development was the 2010 Bank of Israel Law, which strengthened the bank’s independence and clarified its monetary-policy responsibilities. The Israeli new shekel is the country’s currency.