02/22/2026
February 22, 1980: Israel introduced the Shekel.
Within just a few years, inflation would surge - prompting one of the most consequential and ultimately successful economic resets in modern history.
But to understand how Israel reached that turning point, we need to go back.
When Israel declared independence in 1948, the new state continued using the Palestinian Pound from the British Mandate period. In 1952, when the Anglo-Palestine Bank became Bank Leumi Le-Yisrael (National Bank of Israel), the currency was renamed the Israeli Lira.
By 1980, inflation had become a growing concern. And so the modern Shekel was born, reviving a name that reconnects the modern state to the ancient unit of weight and currency mentioned throughout the Torah.
But renaming the currency alone wasn't enough to solve the crisis. Inflation continued to surge - reaching over 400% by the mid-1980s.
In 1985, the government launched a sweeping economic stabilization program - widely regarded as one of the most successful in modern history. The Old Shekel was replaced by the New Shekel at a rate of 1,000 to 1. This plan, including the redenomination of the Shekel, broke the cycle of spiraling inflation and restored economic stability.
Today, the New Israeli Shekel (NIS) is one of the most stable currencies among developed economies. The 1985 stabilization program continues to be studied, to this day, as a case of successful reform under pressure.
That same innovative spirit continues to shape the work being done in Israel today - taking on global challenges and developing solutions that improve lives around the world. In many ways, this reflects a powerful, modern expression of tikkun olam - the enduring Jewish commitment to repairing the world.
