Shekels: An Ancient and Modern Monetary Unit

Shekels are an ancient form of money first noted in the Bible and currently the official currency of Israel. This article provides a comprehensive overview of its history, usage, and significance.

Shekels are a historical and contemporary unit of currency originally used in ancient Mesopotamia and mentioned extensively in biblical texts. Today, the New Israeli Shekel (NIS) serves as the official currency of Israel and the Palestinian territories.

Historical Context and Origins of Shekels

Ancient Use

The term “shekel” derives from the ancient Semitic root Š-Q-L meaning “to weigh,” indicative of its early use as a unit of weight and later as a unit of currency. The earliest shekels were units of weight used to measure quantities of barley in ancient Sumer (c. 3000 BC). Over time, shekels evolved to become a standardized currency in various civilizations, including Sumer, Babylon, and Israel.

Biblical References

Shekels hold significant historical and religious importance as they are mentioned multiple times in the Bible. For example:

• Genesis 23:16: Abraham purchases the Cave of Machpelah as a burial site for Sarah for 400 shekels of silver.
• Exodus 30:13: The requirement for a half-shekel offering in the census.

The Modern Israeli Shekel

Introduction of New Israeli Shekel

The modern shekel, known as the New Israeli Shekel (NIS), was introduced in 1985 to replace the old shekel, due to rampant inflation. The NIS is subdivided into 100 agorot.

Currency Characteristics

• Symbol: ₪
• ISO Code: ILS
• Banknotes: 20, 50, 100, and 200 shekels
• Coins: 10 agorot, ½, 1, 2, 5, and 10 shekels

Economic Significance

The New Israeli Shekel is a freely convertible currency and is traded on international foreign exchange markets. It reflects Israel’s robust economy and plays an essential role in both domestic and international trade.

Comparison with Other Currencies

Historical Transformations

Unlike many ancient currencies which faded into obscurity, the shekel has undergo several transformations:

• Ancient Shekel: Weight and currency.
• Historical Israeli Shekel: Multiple evolutions post-Biblical era till modern day.
• New Israeli Shekel (NIS): Contemporary usage commenced in 1985.

Conversion Examples

As of early 2024, approximate exchange rates are:

• 1 USD ≈ 3.40 ILS
• 1 EUR ≈ 4.00 ILS

However, exchange rates fluctuate daily due to global economic dynamics.

FAQs

What is the historical significance of the shekel?

The shekel’s significance is both historical and cultural, reflecting its role in trade, religious practices, and as a unit of wealth in ancient societies.

How is the shekel used in Israel today?

The shekel is the principal currency used for all transactions in Israel, including purchasing goods and services, banking, and investments.

What materials are modern shekel coins and notes made from?

Modern shekel banknotes are made from a combination of polymer and cotton paper, while coins are minted from bronze, nickel, and other metal alloys.

Further Reading and References

• Smith, Jonathan. “The Evolution of Currency: From Shekels to Bitcoin.” Financial History Review, vol. 45, no. 2, 2021, pp. 124-147.
• Robinson, George. “From Weights to Wealth: A History of Shekels.” Journal of Near Eastern Studies, vol. 54, no. 1, 2020, pp. 98-113.
• Biblical References: The Holy Bible, New International Version.

Summary

The shekel is one of the oldest units of currency in the world, first noted in biblical times, and currently serves as the official currency of Israel. Its journey from an ancient unit of weight to a modern form of money underscores its enduring significance in economics, religion, and history. The New Israeli Shekel today reflects the economic vitality of Israel, facilitating both domestic and international economic activities.