USD to ILS for business payments
Converting US dollars to Israeli new shekels (ILS) to pay a supplier in Israel is simple on the rules side: the Bank of Israel states that foreign currency control was gradually repealed and no control restrictions exist today. The real decisions are which currency to invoice in, because the shekel floats, and how to check the rate you are given against the Bank of Israel's daily representative rate.
- The Bank of Israel states that its exchange rate policy is based on unrestrained fluctuation of the shekel against other currencies, and that it reserves the right to intervene in foreign currency trading when necessary.
- The Bank of Israel publishes a representative exchange rate each foreign currency business day, based on the market rate; it has no obligatory status under law but is a useful reference to check a bank's quote.
- Foreign currency control in Israel was gradually repealed and no control restrictions exist today, although a report on the nature of certain transactions with nonresidents is still required.
- Israeli bank accounts are identified by an IBAN, and many Israeli companies hold a shekel account for local costs and a separate foreign currency account for dollars.
- Israeli law limits cash payments between businesses to NIS 6,000, so business payments run through bank transfers.
The Israeli shekel at a glance
The Israeli new shekel (ILS, also written NIS) is issued by the Bank of Israel, the central bank. The Bank describes its exchange rate policy as based on unrestrained fluctuation of the shekel against other currencies, while reserving the right to intervene in foreign currency trading when necessary. In plain terms, the shekel floats: the market sets its value against the dollar day by day.
| Item | Israeli new shekel |
|---|---|
| Currency code | ILS (NIS in local use) |
| Issuer | Bank of Israel |
| Exchange rate policy (Bank of Israel wording) | Unrestrained fluctuation, with the right to intervene when necessary |
| Reference rate | Representative rate, published each foreign currency business day; no obligatory status under law |
| Exchange controls | Gradually repealed; no control restrictions today |
| Reporting | A report on the nature of certain transactions with nonresidents |
| Account format | IBAN, with the bank's SWIFT code for payments from abroad |
Sources: Bank of Israel, Exchange Rates; International Trade Administration, Israel Country Commercial Guide. Checked on 29 October 2026.
Israeli rules on paying and receiving foreign currency
Israel is an open market for currency. The Bank of Israel states that foreign currency control was gradually repealed and that no control restrictions exist today. The US government's Country Commercial Guide adds that Israeli individuals and companies may manage bank accounts abroad in shekels or foreign currency.
Three points still matter for a business payment:
- Reporting. A report on the nature of certain transactions with nonresidents is still required so capital flows can be analyzed, according to the Country Commercial Guide. A payment that states its purpose clearly, such as an invoice number and "payment for goods", is easy for the recipient's bank to classify.
- Cash limits. Israeli law limits cash payments between businesses to NIS 6,000 and between private individuals to NIS 15,000, so supplier payments go through banks.
- Currency choice is free. You may pay an Israeli supplier in dollars or shekels; the supplier may hold the dollars or convert them when it chooses.
For the receiving side, see our guide to USD business accounts in Israel.
How a payment reaches an Israeli supplier
An Israeli bank account is identified by an IBAN, the International Bank Account Number, and the bank has a SWIFT code for payments from abroad. Many Israeli companies hold a shekel account for payroll and local costs and a separate foreign currency account for dollars, each with its own IBAN. A dollar wire sent to the shekel account is converted by the bank on arrival.
| You send | To | Supplier receives | Who converts |
|---|---|---|---|
| USD by SWIFT | The IBAN of the dollar account | USD | The supplier, when it chooses |
| USD by SWIFT | The IBAN of the shekel account | ILS | The supplier's bank, at its rate, on arrival |
| ILS, converted before sending | The IBAN of the shekel account | The exact shekel amount | You or your provider |
Sources: Bank of Israel, Exchange Rates; Discount Bank, Foreign trade and foreign currency. Checked on 29 October 2026.
Timing differs from the US week. Discount Bank's foreign trade unit works Sunday to Friday, with shorter hours on Sunday and Friday, and orders received within two hours before the unit closes, or on non-business days, are processed on the next business day. A dollar wire sent on a US Friday afternoon is usually credited on Monday. Our guide to sending money from the US to Israel covers timing in detail.
What converting USD to ILS costs
A dollar to shekel conversion is priced from the mid-market rate, the midpoint between buying and selling prices at that moment. Your provider adds a margin, the gap between that rate and the one you are given, and charges a fee for the payment. Israel gives you a simple check: the Bank of Israel's representative rate for the day. It has no obligatory status under law and is not a dealing rate, but comparing your quote with it shows roughly how wide the margin is. The same check works if your supplier's bank converts a dollar wire on arrival.
Helm is a financial technology company, not a bank. Its US dollar account services are provided by Bridge Building, Inc. (NMLS ID 2450917), a licensed money transmitter, with customer funds held at Lead Bank. A Helm account holds dollars in your company's own name and sends international payments to suppliers by SWIFT, or by local rails in the supplier's currency where available, with the rate, fee and expected arrival shown before you send.
Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment. See how Helm pricing works.
Pay an Israeli supplier in USD or ILS?
- Pay USD when the supplier invoices in dollars and gives a dollar account IBAN. Many Israeli exporters with dollar revenue and shekel salaries prefer to receive dollars and convert on their own schedule.
- Pay ILS when the invoice is in shekels, for local services, or when the supplier has only a shekel account. You carry the exchange rate risk because the shekel floats.
- Check the IBAN against the invoice currency before sending, so a dollar payment does not land in a shekel account.
For how wire charges are split between sender and recipient, see our guide to OUR, SHA and BEN.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
Is the Israeli shekel pegged to the US dollar?
No. The Bank of Israel states that its exchange rate policy is based on unrestrained fluctuation of the shekel against other currencies, and that it reserves the right to intervene when necessary.
Does Israel have exchange controls?
No. The Bank of Israel states that foreign currency control was gradually repealed and no control restrictions exist today. A report on the nature of certain transactions with nonresidents is still required.
What is the Bank of Israel representative rate?
It is an exchange rate the Bank of Israel publishes each foreign currency business day, based on the market rate. It has no obligatory status under law, but it is a useful reference for checking a bank's quote.
Do Israeli bank accounts use IBAN?
Yes. Israeli bank accounts are identified by an IBAN, and the bank has a SWIFT code for payments from abroad. Use the IBAN of the account that matches the invoice currency.
Should I pay an Israeli supplier in USD or ILS?
Pay in the invoice currency to the matching account. Exporters often prefer dollars and convert on their own schedule; local services are usually invoiced in shekels.
What does Helm charge to pay a supplier in Israel?
Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.
References
- Bank of Israel: Exchange Rates
- International Trade Administration: Israel Country Commercial Guide, Trade Financing
- Discount Bank: Foreign trade and foreign currency
- Federal Reserve Financial Services: Fedwire Funds Service operating hours
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.