Five-agorot coin may be on its way out

Due to rising costs of metals and minting, a five-agorot coin actually costs the bank 16 agorot to produce.

By YONI TEITZ
July 17, 2007 08:00
1 minute read.
5 agorot88 298

5 agorot88 298. (photo credit: )

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

After a new survey shows most Israelis see no use for it, the Bank of Israel announced Monday that it has requested that the government approve removing the five-agorot coin from circulation. In addition to the Dahaf Institute survey, which revealed that 80 percent of the Israeli public support the move and other studies that show reluctance among companies that deal regularly in cash to accept the coin, the central bank estimates savings of NIS 1.7million from its elimination. Due to rising costs of metals and minting, a five-agorot coin actually costs the bank 16 agorot to produce. The central bank has explored the option of switching to a less costly metal, but found that even with the cheapest metal available, the cost of the coin would still only drop to six agorot. If metal prices continue to rise, and the gap between the face value and the material value of the coin widens enough, the central bank said it fears the coin will simply be melted down for metal. The move still must be approved by the government and the Knesset Finance Committee, and after a one-year transition period, the Bank of Israel would then cancel the coin as legal tender. At that time, cash prices would be rounded to the nearest 10 agorot. The move to cancel the five-agorot coin follows an announcement earlier this month that the Bank will issue new two-shekel coins by year-end, a decision that also was based on public surveys. Israel has had a five-agorot coin since 1960.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS