Collectors often ask me: "What currency did Israel use before those modern shekel coins?" Let's dig into this monetary mystery.

Before the 1980s, Israel used three successive currencies: the Palestinian pound¹ (1927-1948), the Israeli lira² (1952-1980), and the old shekel³ (1980-1985) - each telling stories of national transformation.

Last year, a client brought me a 1948 50-mils coin found in his grandfather's attic. This discovery sparked our journey through Israel's monetary history.

What was the first coin of Israel?

The first coins minted under Israeli sovereignty carried both practical and symbolic weight.

Israel's first official coinage debuted in 1948 as 25 and 50 mils pieces, featuring ancient Jewish symbols like the seven-branched menorah on aluminum-bronze discs.

Key features of 1948 series

The provisional government chose durable aluminum-bronze due to post-war metal shortages. These coins carried dual language inscriptions - Hebrew numerals and English text, reflecting the nation's complex identity at birth.

What was Israel's first currency?

Currency choices reveal political realities. Israel's first legal tender wasn't originally Israeli.

From 1948-1952, Israel continued using the Palestine pound (£P) inherited from British rule while developing its own monetary system, finally introducing the Israeli lira in 1952.

Currency transition timeline

1. 1927-1948: Palestine pound (pegged to British £)
2. 1948-1952: Temporary "Israeli pound" overprints
3. 1952-1980: Israeli lira (known locally as "pound")
4. 1980-1985: Old shekel (1 shekel = 10 lirot)
5. 1985-present: New shekel (1 new = 1000 old)

This phased transition allowed economic stability during state formation. The initial currency maintained British measurement units (1000 mils = £1) to ease international trade.

What was the currency in Israel before the shekel?

Before the shekel became famous, its predecessor fought hyperinflation.

The Israeli lira (1952-1980) preceded the shekel, suffering 300% inflation by 1980 that forced currency reform - 1 new shekel eventually equaled 10,000 old lirot.

Economic pressures driving change

• 1970s Oil Crisis: Energy costs tripled
• Military Spending: 25% GDP during Yom Kippur War
• Indexation Culture: 90% of contracts linked to USD

When we produced replica lira coins for a Tel Aviv museum, I handled original 1978 10-lira coins. Their worn edges testified to years of rapid circulation during economic turmoil.

Preserve History with Precision Replicas

Before concluding, let me share why historical coins matter today. At INIMAKER®, we've crafted museum-grade replicas for educators and collectors since 2012. Our ISO-certified facility in Shenzhen reproduces every detail:

• Authentic patinas using dual electroplating
• Laser-engraved edge lettering
• Archival acrylic displays with historical context cards

Last month, we shipped 500 British Mandate-era replicas to a London university. Their archaeology department praised our RFID-embedded authentication tags. Whether for teaching or collecting, we make history tangible.

Conclusion

From British pounds to hyperinflated lirot, Israel's currency evolution mirrors its national journey. Each coin tells a survival story - much like our craft preserves these narratives in metal. Now when you hold a shekel, remember: it carries 100 years of economic resilience.