Letter of the Head of the Currency Department
Currency in circulation in 2011
The value of currency in circulation was about NIS 49 billion at the end of 2011, compared to about NIS 45 billion1 at the end of 2010. This represents a rate of increase of about 9 percent, which is similar to the 8 percent increase in 2010. The increase was the result of, among other things, the growth in the population and the expansion of economic activity during the last two years. Nonetheless, the rate of increase in currency in circulation was significantly lower than in 2008 and 2009 (when the rates of increase were 19 and 21 percent, respectively). The lower rate of increase during the last two years can be attributed to the interest rate increases which began simultaneously with the renewal of growth. Banknotes accounted for 97 percent of the total value of currency in circulation (NIS 47.4 billion) while coins accounted for 3 percent (NIS 1.6 billion). The upward trend in the proportion of NIS 200 banknotes in recent years continued in 2011, with an 18 percent rate of increase this year as a result of an increase in the number of ATMs dispensing the NIS 200 banknotes. The average withdrawal from ATMs continued to grow this year (at a rate of 5 percent) to NIS 616.