Since September 2024, there has been a significant decrease in the number of NIS 200 bills that the public has been set up for the number of NIS 100 bills, according to the banks of the Bank of Israel. In September, “Globes” revealed an initiative by a group of economists and experts, and called for the cancellation of the NIS 200 bill to combat black funds. The report led to mixed reactions by Israeli economic organizations, but experts say that the speech that caused a state of panic and persuaded many to get rid of their bills NIS 200.
The total amount of cash in Israel has decreased dramatically since September 2024, by 4.7 %, and also increased by less than 2 % during the past year – the most moderate increase recorded by Bank of Israel since 2001.
Rising star
The Israel Bill NIS 200 is the largest category in trading in terms of value and size. “Most black money is hidden in these banknotes,” said Dr. Adam Reuters, head of financial immunity “Globes”. Reuters imagined the plan to cancel the NIS 200 bill and formed a team of experts and former officials from financial institutions, organizers, academic circles and even Mossad to pay for its implementation.
According to Norite Zivi, one of the supporters of the plans, “it can be assumed that the largest part of the money is not used in actual purchases is used to collect capital and evade taxes. In the end, people will buy a car, an apartment, or wash it in another way.”
Therefore, the plan suggested allowing people to deposit funds – initially during the “permission period” during which the tax can be paid without criminal procedures, while the penalties will be provided.
On the eve of the proposal, the audience occupied 132 billion NIS bills, with 80 % of the value in Sheekel 200 NIS bills, survival in maintaining value, and less for daily trading.
Reactions were mixed on the plan. After several weeks, Prime Minister Benjamin Netanyahu issued a directive to the Minister of Finance, the Ruler of the Bank of Israel, the Director General of the Prime Minister's Office, and the heads of the Tax Authority and his headquarters to combat crime in the Arab community for a discussion of discussion to cancel NIS 200 bills. .
On the other hand, a few days after the guidance, the Bank of Israel poured cold water on the plan, claiming that it was not provided for sufficient reasons for that, and confirmation, “NIS 200 invoices circulating, such as other bills and coins, and will continue to be used as usual.”
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Regardless, the market was fast in the response, and began to spend 200 NIS bills or convert it into a foreign currency.
This can now be seen at the Israel Data Bank. Sepxe September, when the policy document was released, the number of NIS 200 bills decreased, while the number of NIS 100 bills increased. If there is 2.5 times in September more than 200 NIS bills more than NIS 100 bills, in the last data available (Jan 2025) decreased This percentage sharply to less than 2.2, which led bills.
In general, the audience's bills retained by about 4.7 % since September, which is 6.2 billion shekels. According to bank data, this is still a 2 % increase in the amount of money, but it is the most moderate annual increase that has been recorded since 2001, the first year of data on the Bank of Israel.
There is no protection against inflation
Dr. Adam Reuters, who started the plan tells “Globes”, the dramatic decrease in NIS from 200 to 100 bills stems accurately from the discussions that arose after our proposal. I heard from sources linked to people who hide the money that caused the concern of many. There was a rush to the money changing to buy dollars in exchange for 200 NIS bills, and many are no longer ready to accept such bills as payment. This also stems from an increase in the size of fake nis 200, which leads to a lower demand for them. All this makes it more difficult for evaders and brings superficial information that helps collect real taxes. He also says that “elements in the tax authority link points.”
Dr. David Disnec, Assistant Professor at Coller College of Administration at Tel Aviv University and a member of the Tel Aviv City Council, believes that discussions about the cancellation of 200 laws in September are probably or stronger because of its decline in proportion to NIS 100 bills.
However, he adds that there are other supportive factors: “inflation, which has reached 3.8 % in the past year, means that the money contract is less profitable. The main use of the NIS 200 bill is to maintain value and inflation, with inflation, side by side means interest rates Provided by banks and other financial tools, that the cost of keeping money, especially the high integration notes, is especially high.
Despite the significant decrease, the audience still holds a large amount of money: 127 billion NIS of bills, and 3 billion New in coins. All this while electronic payment methods are more available than ever, the criticism law limits large transactions (more than 6000 NIS), and inflation erosion quickly any amount that accumulates in physical currencies and bills.
You will not disappear so quickly
The Ministry of Finance and the Israeli Tax Authority may be happy to see a real decrease in the value of the money that the public maintains, as part of the fight against tax evasion and illegal transactions, which are easy to conduct the use of cash. However, the value only increases. Although he is very slowly, it appears at least at the present time – the banknotes do not disappear in the governor and under the meters so quickly.
It should also be noted that both the Palestinian Authority and Gaza's tape are part of “Shekel Bloc”, and that the new Israeli shekel is the currency in circulation there. There, of course, it is difficult to enforce laws such as the law of money.
The Bank of Israel said, “The role of the Bank of Israel, according to the law, is the issuance of the currency, the organization and guidance of the currency system and a regular monetary provision of the economy, in routine and emergency situations. The bank provides the public with banknotes in four categories (NIS 20, 50, 100 and 200), According to the current demand in the public as received from the banking system.
“The circulating criticism in Israel increases every year, and in 2024 the growth rate was about 2 %. Data are provided about the currency system, including circulatory data, monthly for the end of the month and value data, and it is published to the public on a continuous basis on the bank’s website. “
It was published by Globes, Israel Business News – En.globes.co.il – on February 18, 2025.
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