​(Communicated by the Bank of Israel Spokesperson)

The value of cash circulation at the end of 2015 was NIS 73 billion, an increase of about 16 percent compared to the figure for the previous year.  This was due to the decline in the interest rate and the entry into circulation of banknotes from the new series in December.  The value of circulation in Israel increased in recent years by an average of about 10 percent per annum.  Notably, despite the development of advanced electronic means of payment and government decisions on minimizing the use of cash as part of the struggle against the unreported economy, the volume of cash did not decline, but rather increased, similar to the situation in other countries.

Report highlights:  

•    Currency circulation in Israel totaled NIS 73 billion at the end of 2015, compared with NIS 63 billion at the end of 2014—an increase of 16 percent, against the background of the decline in interest rates in 2015.

•    Similar to previous years, the increase in the value of banknote circulation in 2015 is explained mainly by an increase in the number of NIS 200 banknotes in circulation.  In 2015, a large proportion of these banknotes were due to banknotes from the new series being put into circulation in December once the banking system had been provided with an inventory of new banknotes prior to launch.  The NIS 200 banknotes account for 48 percent of all banknotes in circulation.

•    In 2015, withdrawals from the banks by the public totaled NIS 231 billion, an increase of 2 percent compared with 2014.  The figures show that for the first time in a decade, there was a decline of 2 percent in the value of withdrawals from tellers.  In parallel, there was an increase of 10 percent in the value of withdrawals from ATM machines belonging to the banking corporations.

•    The figures for September 2016 show that the rate of replacement of the NIS 50 banknote (which was launched in September 2014) is 86 percent, and the rate of replacement in the circulation of the NIS 200 banknote (which was launched in December 2015) is 36 percent.  According to the plan, the replacement of the NIS 200 banknotes in circulation will be completed by the time the NIS 20 and NIS 100 denominations are launched, which is planned to take place by the end of 2017.

In recent years, the Currency Department has been leading the project to replace the series of banknotes, the main purpose of which is to improve the security features in order to lower the risk of counterfeiting.  The security features on the new banknotes are among the most advanced of their kind, very easy for the public to identify, and very difficult to counterfeit.  The banknotes of the new series and the security features they contain have won prizes and recognition at international professional currency competitions.

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The 2015 report includes a wide range of detailed information on the Department’s activity during the past year.  Further information is available on the Bank of Israel’s website.