Israeli lira

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The lira or pound (Hebrew: לירה, plural lirot, לירות) was the currency of Israel from shortly after the creation of the state in 1948 until 1980.

[edit] History

The British Mandate of Palestine, which administered the territory now known as Israel prior to May 15, 1948, issued the Palestinian pound, a currency equal in value and pegged to the UK Pound, which was divided into 1000 Mils. Most banknotes in circulation were issued by the Palestine Currency Board, but the Anglo-Palestine bank of the Zionist movement issued banknotes of its own bearing the same values and similar in shape.

Israel inherited the Palestinian pound but, shortly after the establishment of the state, new banknotes and coins were issued bearing the name of the new state. On these banknotes the term lira replaced pound and the Hebrew name prutah (sometimes pruta, פרוטה) replaced the mil. The pegging to the UK Pound was abolished within a few years and, in 1960, the sub-division of the lira was changed from 1000 prutah to 100 agorot (singular agora, אגורה ,אגורות).

During the 1960s, a debate over the non-Hebrew name of the Israeli currency resulted in a law ordering the Minister of Finance to change the name lira into a Hebrew name, sheqel (שקל). The law allowed the minister to decide on a proper date for the change. The law did not come into effect until February 1980, when the Israeli government decided to change the monetary system and introduce the sheqel at a rate of 1 sheqel = 10 lirot.

[edit] Coins

Israel's first coins were aluminium 25 mil pieces, dated 1948 and 1949, which were issued in 1949 before the adoption of the pruta. Later in 1949, coins were issued in denominations of 1, 5, 10, 25, 50, 100 and 250 prutah.

In 1960, coins were issued denominated in agora. There were 1, 5, 10 and 25 agorot pieces. In 1963, ½ and 1 lira coins were introduced, followed by 5 lirot coins in 1978.

[edit] Banknotes

In 1948, the government issued fractional notes for 50 and 100 mils whilst the Anglo-Palestine Bank issued banknotes for 500 mils, 1, 5, 10 and 50 lirot (pounds) between 1948 and 1951. In 1952, the government issued a second series of fractional notes for 50 and 100 prutah with 250 prutah notes added in 1953. Also in 1952, the "Bank Leumi Le-Israel" took over paper money production and issued the same denominations as the Anglo-Palestine Bank except that the 500 mils was replaced by a 500 prutah note.

The Bank of Israel began note production in 1955, also issuing notes for 500 pruta, 1, 5, 10 and 50 lirot. In 1968, 100 lirot notes were introduced, followed by 500 lirot notes in 1975.