Before the First World War, Palestine was under the rule of the Ottoman Empire which used the Ottoman lira at that time. From 1920 to 1948 the currency used in Palestine was the Palestinian pound which had the same value as the Pound Sterling.
In 1948, the British Mandate came into power, and the Israeli Shekel replaced the previous currency in the areas that had been occupied by the Israeli Forces. The Jordanian Dinar was used in the West Bank and the Egyptian pound in the Gaza Strip.
Israeli Shekel is the currency in the West Bank and Gaza Strip
Since the Six Day War in 1967 and up until now, the Israeli Shekel has been the primary currency in the West Bank and Gaza Strip, especially since the signing of the Paris Protocol in 1994, which makes the Palestinian economy dependent upon the Israeli economy. The symbol of the Israeli Shekel is this sign (₪). It is divided into 100 agoras or agora (cents). The currency code for the Israeli Shekel today is “NIS” for New Israeli Shekel.
In addition to the Shekel, the Jordanian Dinar and the American Dollar are also in use in Palestine in some circumstances such as buying houses, land, cars, and all high-value properties.
It is no problem to come to Palestine carrying American Dollars, Euros, and pounds sterling. In Palestine, there are many exchange agencies and agents, as well as banks, where you can easily convert your money to NIS.
For up-to-date exchange rates, visit the following website: http://www.xe.com/currencyconverter/
Generally, there are 3.5 to 4 NIS to the U.S. dollar and 4 to the European Euro. Banks are open from 8 A.M. to 3 P.M. and ATMs are open 24 hours. The major banks found in Palestine are the Arab Bank, the Bank of Palestine, the Cairo Amman Bank, and the Bank of Jordan.
Be aware that the Bank of Jordan, the Arab Bank, and currently, the Cairo Amman Bank, only give money in Jordanian dinars, which you would then have to exchange into NIS.
Final remarks
It is important to note that most stores do not accept credit cards. The best way to cover your daily expenses is to use an ATM-compatible card as mentioned above; otherwise, have enough cash on you for your entire trip. ATMs are readily available in most places in Palestine.
It is worth mentioning that Western Union has many offices in Palestine which allow you to send or receive money quickly.
