Despite Legislative Measures, Israelis Still Opt to Use Cash

Despite legislative efforts to limit the use of cash in the country, Israel’s currency in circulation continues to grow, according to a report published Wednesday by the Israel Tax Authority.

In 2018, Israel’s currency in circulation amounted to NIS 85.9 million (approximately $24.3 million), representing a 4% increase compared to 2017, the report said. The amount of cash in circulation grew by an average of 5% a year in the past three years, and by an average of 10% a year in the past decade.

In Israel, cash transactions accounted for 6% of the gross domestic product (GDP) in 2018, compared to 8% in the U.S., 4% in both Canada and Australia, and just 1% in Sweden, according to the report.

In January, new regulations restricting the use of cash and banning all cash transactions amounting to more than NIS 50,000 (approximately $14,200), came into effect in Israel. Transactions between an individual and a business are now limited to NIS 11,000 (about $3,100).