Bank of Israel Representative Rate Converter
Billing an overseas client in dollars? The invoice is still recorded in your books in shekels, at the representative rate of the transaction date. Here's the latest rate published by the Bank of Israel, conversion in both directions, and the option to enter a rate from another date for an older invoice.
Convert at the representative rate
The latest representative rate published by the Bank of Israel.
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The rule worth knowing
A foreign-currency invoice is booked in shekels at the representative rate of the transaction date — not the rate on the day the money lands. The gap between those two dates is an exchange difference, recorded separately as finance income or expense.
VAT on a foreign-currency transaction is reported in shekels at that same rate. If you bill in dollars, keep the rate used for each invoice — that's what the filing needs.
Rates are pulled from the Bank of Israel and shown as published. The rate displayed is the most recent one — for an invoice from another date, use that day's rate.
How it works
- •The rate of the transaction date, not the payment date. The invoice is recorded at the rate on its own date. Whatever the rate does before the money lands is a separate story.
- •The gap is an exchange difference. If the dollar rose between issue and receipt, the difference is finance income; if it fell, finance expense. It isn't part of the revenue from the transaction itself.
- •VAT is reported in shekels. Even for a foreign-currency transaction, the VAT filing is in shekels at that same rate. Keep the rate used for each invoice.
- •Not every currency is quoted per unit. The Japanese yen, for instance, is quoted per 100 units. The calculator handles this — in a manual conversion it's the error that multiplies by 100.
Frequently asked questions
What is the representative rate and who sets it?
The representative rate is an official exchange rate published by the Bank of Israel each business day, used for reporting, accounting and tax. It is not the rate you'll get at a commercial bank, where buy/sell spreads and fees apply.
Which rate do I record a dollar invoice at?
The representative rate of the transaction date — the invoice date. If the client paid two months later at a different rate, the gap is recorded as an exchange difference and doesn't change the original revenue figure.
What are exchange differences and how are they recorded?
The difference between the transaction's shekel value on the invoice date and its value on the receipt date. A rise creates exchange income, a fall creates an expense. They're recorded under finance items, not as part of business turnover.
Must the invoice be in shekels, or can it be in dollars?
You may state a foreign-currency amount on the invoice, but you must also show the shekel value and the rate used. Reporting to the authorities — VAT and income tax — is in shekels either way.
What if I need a rate from a past date?
The Bank of Israel publishes an archive of representative rates by date. This tool shows the latest rate only, but you can enter the transaction date's rate manually and convert with it.
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