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Israel: Retirement of the 5 agorot coin

Started by Figleaf, July 18, 2007, 07:53:37 AM

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Figleaf

A coin that costs more than triple its denomination and is of no use to most of its customers is a burden on tax payers. So why is it not quitly abolished? I think the people who now say they see no use for it will be the same to clamor for its return if they are not carefully and slowly prepared for its retirement. People hate change.

And of course it is true that Israel's 5 agorot has a long tradition, but only if you want to forget that Israel reformed its currency a couple of times. The pound of 1948 is most certainly not the same as today's shekel.

See also this thread (now illustrated).

Source: The Jeruzalem Post

Peter

Five-agorot coin may be on its way out
By YONI TEITZ

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.
An unidentified coin is a piece of metal. An identified coin is a piece of history.

BC Numismatics

Peter,that is very interesting reading about the 5 Agorot coin.It is a pity that I can't read the dates on the Israeli coins that my boss sometimes gets landed with.

Aidan.

Figleaf

This table might help. The first column is the Christian date, the second the Hebrew dat as on the coins in Hebrew characters, the tird the Hebrew date in latin characters. You can also convert a Christian date in a Hebrew date by simply adding 3760, as both dating systems use sun years.

Hebrew is written from right to left. In Hebrew, numerals are written with the same characters as letters. To indicate that the letters are used as numerals, the character " is inserted before the last character. Note that the first numeral (5) may have been left off on the coins.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

BC Numismatics

Peter,that's a very good JY to AD date conversion chart.

Aidan.

muntenman

what about the 1 agorot coins... ??? are they dissappeared and when was that?
GLOBAL MODERATOR under the name of GRIVNAGOZER at www.munthunter.nl

BC Numismatics

Muntenman,there wasn't a 1 Agorah coin,as the Israeli Lira has always been a very weak currency in terms of its value & spending power.

Aidan.

muntenman

Well, I have got several of them in my collection depicting a boat... so I may assume they were intended solely for mintsets only.
GLOBAL MODERATOR under the name of GRIVNAGOZER at www.munthunter.nl

Rangnath

I've got a well used aluminum 1 agorot from 1961 that I took out of general circulation myself, in 1969.
richie

Figleaf

The original system in the Palestine mandate was (like in other British dominated territories in the Middle East) the UK pound, divided into 1000 mils. If you wish, you could therefore consider the Palestine 10 mil coins (KM 4 and 4a) as the predecessor of the agorot. Fast forward to 1948, when a pound was divided into 1000 prutah. The 10 pruta coins (KM 11, 17, 20 and 20a) are clear predecessors of the agorot.

The name agora comes from modern Hebrew and means "small coin". The first agorot coins were issued after the reform of 1960, which created a lira of 100 agorot. These coins show three ears of wheat as the principle design element. These were issued until 1980 (KM 24.1 and funny varieties in sets only). A further reform created the sheqel (10 lira), divided in 100 agorot. Coins of 1 new agora, showing a date tree with fruits (KM 106), were struck 1980-1982. They were of so little value that tey were not often used and almost immediately abolished in circulation. In 1985, a further reform followed, creating the new sheqel of 1000 sheqel, divided in 100 agora, showing an antique galley as found on the wall of a grave (KM 156). This type held forth until 1991 (again with some sets only varieties). If the five agorot gets chucked out, the smallest coin in circullation will be the 10 agorot.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Rangnath

I guess the Palestine one and two mil coins (KM 1 and 2)  were the predecessor for the 1/10 and 1/5 agorot.

I know I'm stretching it Peter, but I don't have a km 4!!!!

Anyway, Richie says more calmly, thanks for the analysis.


richie

Figleaf

Hehehe, I guess that's right, Richie. Here's KM 4. It's a nice, unclogged, professional design. I like how they worked around the hole in a natural way.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Rangnath

So that's what I'm missing.  Very nice. What a wonderfully calm design and message.  "Palestine, the hole-y (holy?)  land where all are given an equal say and all can live in peace."  Sigh.
richie

Figleaf

Knesset Finance C'tee announces 5 agorot coin to go out of circulation
By JPOST.COM STAFF, Jan 1, 2008 16:57 | Updated Jan 1, 2008 16:59
 
The 5 agorot coin will gradually be taken out of circulation, the Knesset Finance Committee decided Tuesday. Bank of Israel, on whose recommendation the committee made its decision, is expected to save NIS 1.7m, due to the fact that minting the coin costs 16 agorot, over three times its value.

The Bank of Israel recommendation was also prompted by a Dahaf Institute poll, which showed that 80% of the public was in favor of taking the coin out of circulation.

Banks will be accepting the public's defunct coinage until 2011.

Source: Jerusalem Post
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Rangnath

So what's next?  The 10 agorot?  When will they stop?
richie

Figleaf

Well, if the 5 agorot costs 16 agorot to produce and the 10 is slightly larger it it won't be long before someone starts raising eyebrows at it. At a value of 1.789 eurocent, the coin does have its use, though, so one would expect a new issue, smaller, made from a cheaper metal or both.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.