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Upon its founding, Israel used the Israeli pound (lira) as its currency. This currency was used from 1948 until 1980, when it was replaced by the shekel. In 1980, the Israeli government introduced the new shekel (ILS) as the official currency, replacing the old Israeli pound. The new shekel was divided into 100 agorot.

In 1985, a new series of coins was issued, marking the introduction of the new shekel. The official currency of Israel is the New Israeli Shekel (NIS or ILS), commonly referred to simply as the shekel. 

In 2022, the Bank of Israel unveiled a new series of coins featuring updated inscriptions, with "new shekels" replacing "new sheqalim. The coins are minted by the Korea Minting and Security Printing Corporation (KOMSCO). Israel coins in denominations include 10 agorot, 1/2 shekel, 1 shekel, 2 shekel, 5 shekel and 10 shekel.

The 10 agorot and 1/2 shekel coins are made of aluminum bronze. The 1 and 2 shekel coins are composed of nickel-plated steel, while the 5 shekel coin is made of cupronickel. Lastly, the 10 shekel coin has a dual composition: the outer ring is made of nickel-bonded steel, and the center is aureate-bonded bronze. These coins typically depict significant symbols, figures, or motifs representing the nation's culture, heritage, or values.

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