What’s The Exchange Rate For Jerusalem Shekels To Tel Aviv Shekels?

February 27, 2012

(Brian of London at Israelly Cool)
Later today my employees will drive to Jerusalem to sell goods to some Arabs (they’re not going to Salahadin St today because the situation is a little more tense than usual but they’ll exchange goods for cash somewhere else).
When they get there they will receive payment in “New Israeli Shekels” – ₪ NIS. The same currency is used across the whole of Israel including by the Arabs under administrative control of Israel and the Palestinian Authorities. My customers today work in both Jerusalem and Ramallah.
But according to the US IRS web site from December 31st 2011, perhaps I should be asking my Arab friends to pay a different rate? Apparently their Shekels aren’t worth the same as my Shekels in Tel Aviv!
From the following web page: Treasury Reporting Rates of Exchange as of December 31, 2011 which is used by US citizens who need to report income earned overseas in US Dollars:

We scroll down to find the rate for Israel and we get a bit of a surprise. Because, apparently, there is another place in the world that uses the New Israeli Shekel. A whole ‘nother country called “Jerusalem”. And this must be another country because it has a different rate from the one that covers the country called “Israel”.

So, just to be sure of when this Shekel using country popped into existence I had a quick scan back. I look all the way back to 1982 but only found one country, with one exchange rate, using the Israeli Shekel. That country was Israel.
But even as recently as December 31st 2010 there was only one country using the Shekel:

So sometime last year either the IRS, or the IRS following the wishes of the State Department created a whole new country called “Jerusalem”, assigned it a whole new currency called the Shekel and decided to make up their own exchange rate.
I better tell my Arab friends in Jerusalem.
Special h/t to a long time Israellycool reader. And I do hope he doesn’t get in trouble with the IRS for pointing this out!

I’ve been waiting to say this… that’s racist!


Unilateral State: Israel would no longer collect Value Added Tax on behalf of the Authority

July 6, 2011
…and that would mean that the immense monthly fund transfers to the PA and to Gaza shall draw to an end. The Oslo Accords shall be annulled! Why is almost everything more expensive in Israel?

Israel’s consumer markets resemble the European model. A  value-added-tax (VAT) of 16 percent is either added to or included in  every transaction, and there are almost no exemptions. Import tariffs  ranging from 30 to 75 percent, along with transportation and shipping  expenses, also add to wholesale and retail costs. 

Defense Minister lets Hamas deposit nearly NIS 300 million in Bank of Israel

February 23, 2010

Defense Minister Ehud Barak has signed a document allowing Hamas in Gaza to deposit approximately NIS 282.5 million ($75 million) in the Bank of Israel. The reason for the deposit is that Hamas smugglers don’t accept Shekels so Hamas needs a way to convert them into other currencies. read the rest at israelmatzav.blogspot.com

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Posted by Noah Simon