A special coating is being added to make the new notes more durable.
The Bank of Israel is planning to replace NIS 20 notes, because many of them are wearing out. The new notes will enter circulation a few months from now. No new design, form, or color is being introduced, but a special coating is being added to make the new notes more durable.
Special paper is being ordered from the US for the notes, which is expected to double their life span to 2.8 years. The current NIS 20 notes wear out at a very high rate; 80% of them are replaced within a year.
The notes’ high replacement rate is due to their high velocity of circulation in the territories, especially in the Gaza Strip. NIS 20 shekel notes are also one of the most common notes in Israel itself. They are a large component in financing deals by Palestinian merchants and businesspersons within the Green Line. In recent years, there have been many complaints that NIS 20 shekel bills from the territories are wrinkled.
Published by Globes [online] - www.globes.co.il - on October 31, 2005