Before the First World War
Prior to the outbreak of the First World War, the historically significant region of Palestine found itself under the governance and control of the vast Ottoman Empire. This imperial power held sway over the land, and as a result, the predominant currency employed within the territory was none other than the esteemed Ottoman lira. During this era, the Ottoman lira served as the principal medium of exchange, facilitating economic transactions and trade activities across the diverse landscapes and bustling markets of Palestine.
It acted as a unifying force, facilitating commerce and fostering connections among the vibrant communities that resided within this historically significant region. The widespread circulation and acceptance of the Ottoman lira were emblematic of the empire’s influence and its administration over the land, further solidifying its grip and imprint on the economic fabric of Palestine.
The utilization of the Ottoman lira as the official currency served as a poignant reminder of the intricate historical tapestry woven within the borders of this captivating land, leaving an indelible mark on the socio-economic landscape of Palestine prior to the momentous events that would reshape its destiny during the tumultuous years of the First World War.
1920-1948: Palestinian Pound
From 1920 to 1948, the Palestinian pound was the official currency in Palestine. It was equivalent in value to the Pound Sterling, establishing stability and facilitating economic transactions. The currency symbolized Palestinian aspirations for independence and played a crucial role in shaping their society. Despite political and economic changes, the Palestinian pound remained resilient until it was replaced by the Israeli currency in 1948. Its legacy endures as a symbol of Palestinian history and the pursuit of peace and prosperity.
1948-1967: Transition and Occupied Territories
The year 1948 marked the conclusion of the British Mandate, leading to the Israeli Forces assuming control over specific regions. Consequently, the occupied territories witnessed a transition from the Palestinian pound to the Israeli Shekel.
In the West Bank, the Jordanian Dinar was introduced as the prevailing currency, while the Gaza Strip adopted the usage of the Egyptian pound.
1967-Present: Israeli Shekel and Dependence
Since the Six-Day War in 1967 and up until now, the Israeli Shekel has been the currency used in both the West Bank and the Gaza Strip. This change was reinforced by the signing of the Paris Protocol in 1994, which made the Palestinian economy dependent upon the Israeli economy. The symbol for the Israeli Shekel is ₪, and it is divided into 100 agoras or agorot (cents). The currency code for the Israeli Shekel today is “NIS,” which stands for New Israeli Shekel.
Additional Currencies
In addition to the Israeli Shekel, the Jordanian Dinar and the American Dollar are also used in certain circumstances in Palestine, particularly for high-value transactions such as buying houses, land, and cars. It is acceptable to bring American Dollars, Euros, or Pound Sterling when visiting Palestine. There are numerous exchange agencies, agents, and banks where you can easily convert your money to Israeli Shekels (NIS).
Exchange Rates and Banking
The exchange rate for the U.S. dollar to the Israeli Shekel is generally around 3.5 to 4 NIS, and for the Euro, it is around 4 NIS. Banks in Palestine operate from 8 A.M. to 3 P.M., while ATMs are available 24 hours a day. Major banks found in Palestine include the Arab Bank, the Bank of Palestine, the Cairo Amman Bank, and the Bank of Jordan.
Credit Cards and Cash
It is important to note that most stores in Palestine do not accept credit cards. To cover your daily expenses, it is recommended to use an ATM card or carry sufficient cash for your entire trip. ATMs are readily available in most places in Palestine. However, it’s worth mentioning that the Bank of Jordan, the Arab Bank, and currently the Cairo Amman Bank only dispense money in Jordanian dinars, which then need to be exchanged for Israeli Shekels (NIS). Western Union has multiple offices in Palestine, providing convenient options for sending or receiving money.
For up-to-date exchange rates, you can visit the website: http://www.xe.com/currencyconverter/