Money matters: Every year, Palestine is visited by hundreds of thousands of tourists and travelers looking for an adventure in one of the most ancient places on the planet, rich in history and culture, has an amazing cuisine and also is religiously diverse. 

Whether you are intending to go to the West Bank, Palestine for language education, volunteering, diplomatic reasons or just looking for a new adventurous trip, preparing for such a journey calls for a lot of research and preparation. Consequently, money related questions tend to rise at this point, questions such as how am I going to pay for things there? Will I be able to exchange my currency with the Palestinian one? Are there ATMs available? And questions about the cost of living there are also very important.

In this article, we are going to help you answer money related questions in Palestine especially in the West Bank.

1. What is the used currency in the West Bank and Gaza?
2. ATMs and access to money
3. Banks and monetary system
4. Money transfer and currency exchange
5. Can I pay with my card?

Which Currency Is Used In Palestine?

Throughout Palestine’s history, over 28 currencies have been used here. The short answer is that today the main currency in the West Bank and the Gaza Strip is the the New Israeli Shekel (NIS). Since the singing of the Paris Protocol in 1994, the Palestinian economy is dependent upon the Israeli economy.

Additionally, since the Oslo Accords were signed in 1993, the New Israeli Shekel, the US Dollar and the Jordanian Dinar are all accepted as payment. It can in some cases also be possible to pay in Euros. Generally when paying with a currency other than the shekel, any change due will be given in shekels.

But how did the currency of Palestine come to be the New Israeli Shekel, and what about the shekel is new? Keep reading to find a brief recent history of currency in Palestine. 

Currency During The Ottoman Empire And British Mandate (Pre-1948)

Before the First World War, Palestine was under the rule of the Ottoman Empire from 1516 until it was occupied by the British in 1918. As part of the Ottoman Empire, the currency used in Palestine was the Ottoman Lira. Coins were primarily used with paper bank notes beginning to appear in Palestine in 1914. 

When the British Mandate of Palestine began in 1920, both the Ottoman Lira and Egyptian Pound were used for daily transactions but this stopped in 1927. In 1927 the British Colonial Council’s Currency Committee introduced a new currency with the same value as the British Pound (the Pound Sterling) – the Palestinian Pound.

From 1948 – 1980

After the establishment of the State of Israel in historic Palestine in 1948, the Palestinian Pound continued to be used until it was replaced by the Israeli Lira (also called the Israeli Pound) in 1952. During this time, the West Bank became part of Jordan and the Gaza Strip became part of Egypt.

So the Palestinian Pound was phased out and completely replaced by 1950-1951 with the Jordanian Dinar (in the West Bank) and Egyptian Pound (in Gaza). These were then replaced with the Israeli Lira by Israel after it seized and began militarily occupying the West Bank and Gaza Strip in 1967 and closed all Palestinian and Arab banks operating in these areas.

1980 – Present

In 1980, the Israeli Lira was replaced by the Israeli Shekel (sometimes spelled as “shequel”), with 1 Israeli Lira equivalent to 10 Israeli Shekels (now called Old Israeli Shekels). The name “shekels” was used to give the currency a Hebrew name (as “pound” and “lira” are not Hebrew words).

However, inflation  in the 1970s and 1980s led to this currency becoming hyper-inflated like its predecessor and was replaced by the New Israeli Shekel in 1986. 1 New Israeli Shekel is equal to 1000 (Old) Israeli Shekels. This currency remains in use until today in Israel, the West Bank and Gaza.

New Israeli Shekels

New Israeli Shekels are generally just referred to as “shekels” and are symbolized by this sign (₪). The New Israeli Shekel is divided into 100 Agorot (the plural form of “agora”), just as one dollar is divided into 100 cents. The currency code for the Israeli Shekel today is “NIS” for New Israeli Shekel. This is important to remember if you are withdrawing money from an ATM in Israel or Palestine that offers withdrawals in more than one currency.

NIS Banknotes And Coins

NIS banknotes have gone through several changes and series since first being issued in 1985. Since 2014, they have been issued in the following denominations: ₪20, ₪50, ₪100 and ₪200. NIS coins are currently issued in the following denominations: 10 agorot, ₪1/2, ₪1, ₪2, ₪5 and ₪10. Note that the 10 agorot coins (which are gold in colour) are used in Israel but are not use in the West Bank. Instead, the lowest value used in the West Bank is the ₪1/2 coin and all purchases will be rounded to the nearest half shekel.

Jordanian Dinars 

Jordanian Dinars usually written as JOD or JD are the official currency of Jordan and can also be used in Palestine. Like Palestine, Jordan used to be part of the Ottoman Empire until the League of Nations put the Emirate of Transjordan (as it was called then) under a British protectorate in 1922.

During this time the Palestinian Pound was the currency of Jordan until 1949-1950 when it was replaced by the JOD. The Jordanian Dinar is pegged to the US dollar since 1995 at the rate of 1JOD = US$0.7090.

Using Jordanian Dinars In Palestine

Jordanian Dinars today are often used in Palestine for buying high-value items such as houses, land, cars and animals. There are several Jordanian Banks in Palestine, which should be easy to spot because they usually have “Jordan” or “Amman” (the capital of Jordan) somewhere in their name. Note that Jordanian Bank ATMs will dispense cash in Jordanian Dinars, so always pay attention when using an ATM in Palestine to make sure you get the currency you are looking for. 

In case you accidentally withdraw some JOD, they are accepted by some shops, who will give you your change in shekels, otherwise you can exchange them at a currency exchange office. You will be able to find a variety of ATMs and several exchange offices along Ein Sara (the main street in Hebron), nearby to Engage in Palestine’s center. 

Where Can I Obtain Israeli Shekels? Money Transfer And Currency Exchange

It is very easy to exchange money in Hebron, Palestine, as there are several money-changing places on the main street of Ein Sara. For USD, the exchangers do not take any commission from your exchange. There are money exchange agencies spread all over Palestine, especially in the West Bank. It is easy to convert major currencies and we always advise our students and volunteers to keep track of their currency’s exchange rate compared to the NIS.

However, it is more likely that you will need to find an ATM rather than exchange large amounts of foreign currency. In Hebron there are many different ATMs from different banks, which charge different withdrawal fees and dispense different currencies (JOD, USD, NIS). So it is important to play close attention when using an ATM.

ATMs In Hebron

There are many ATMs in Hebron, but they may not all work with international cards. So if you try to use an ATM it either rejects your card immediately or will not dispense money for you, just try another ATM. If you need advice about this matter, our local staff at Engage in Palestine or fellow volunteers can advise you once you arrive. 

We recommend our participants use the Bank of Palestine ATM, which is one of several ATMs inside Bravo supermarket. Bravo is located on Ein Sara street and approximately a seven-minute walk from Engage in Palestine’s center. In our experience, this ATM works the best with foreign cards and is very reliable. It gives the choice of dispensing USD (US Dollars) or NIS (New Israeli Shekels).  

ATMs And Access To Money

ATMs are the fastest way to gain access to your money, in Palestine, especially in the West Bank, you can easily find 24-hour working ATMs, mostly in gas stations, major hotels, malls and most of them offer the following services:

• Cash Withdrawals
• Check deposit service through some selected ATM’s 
• Online Cash Deposit Services
• Balance Inquiry
• Mini Statement (Last 10 transactions)
• Utility Bill Payment (Paltel , Jawwal and Ooredoo)
• Add Credit to your mobile phone from Jawwal.
• Credit Cards Services (Card information, recent transactions and card payment)
• Cash Withdrawal and Balance Inquiry services to Visa International

Banks And Monetary System

The Palestinian banking system has expanded rapidly in the last six years, and today 23 banks operate in the West Bank and Gaza. Foreign banks have a heavy presence and 14 out of the 23 banks are branches of foreign banks (nine Jordanian, two British, two Egyptian, and one Israeli). 

Here is a list of the major banks in Palestine: 

Can I Pay With My Card?

That is a very important question for folks who do not like carrying cash on them all the time and are accustomed to  paying with their debit or credit cards. It is important to note that paying by card is not a common practice in day to day life in Palestine. Currently Palestinians do not generally use cards to make day to day purchases, although major supermarkets usually accept cards. Bank cards are mostly only used to withdraw money from ATMs.

Nonetheless, there are some shopping places in Palestine which accept cards as a way of payment, this isn’t very common but is becoming a little more common with time. It is recommended that you carry a small amount of cash for your daily expenses and make withdrawals from an ATM when necessary. 

Many Palestinian banks such as the Bank of Palestine issue different type of payment cards.

Be aware that the Bank of Jordan, the Arab Bank, and, currently the Cairo Amman Bank, only give money in Jordanian dinars, which then must be further exchanged into NIS.

ael is much more expensive than living in any city of the West Bank. If you are travelling to both Palestine and Israel take this point into consideration.

Final Remarks

Whether you are travelling to Palestine for fun, as a tourist, for studying Arabic, career prospects or even for religious reasons, the West Bank is an excellent place for you to start. However, financial matters are a very important issue which you should plan for thoroughly beforehand. 

Please also bear in mind that our staff are always ready to help you before and during your trip. To elaborate on how we can help you, our staff will answer all your questions about financial practicalities and roughly how much money you will need during your stay. Our staff will also gladly show you where you can use your card, where the ATMs and banks are located  and more importantly where you can exchange your currency to NIS. 

We will be more than thrilled to be part of, and guide you through your journey.

Should you have any questions, please do not hesitate to contact at Info@ecpalestine.org

Whatsapp:+972599479880

For more information, please visit our website: https://excellencenter.org/

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