The currency used in Israel is the Israeli New Shekel, abbreviated as ILS. Introduced in 1985, the shekel replaced the old shekel at a fixed exchange rate, aimed at stabilizing the economy. The new shekel is subdivided into 100 agorot. The central bank of Israel, known as the Bank of Israel, is responsible for issuing and regulating the currency. The shekel is also used in the Israeli stock market and is traded on foreign exchange markets, reflecting Israel's economic strength and stability within the region.