Israelis Hoard Record Sum in Cash Amidst Rising Crime and Tax Evasion Concerns
Translated & summarized from Globes by baba
Israelis are holding a record 129 billion shekels in cash, a trend that has accelerated in 2026 despite government attempts to reduce cash usage. This increase is occurring while concerns about tax evasion and crime rise, with some attributing cash usage to a form of protest against the government. Meanwhile, a commercial space in Tel Aviv is being converted into a fashion museum, and schools in Kiryat Ata were evacuated due to pollution from a nearby refinery.
The story in 6 lines · by baba
- Israelis are holding a record 129 billion shekels in cash, with holdings increasing significantly in 2026.
- A proposed law to criminalize holding over 200,000 shekels in cash did not pass.
- Prime Minister Netanyahu and Foreign Minister Saar's efforts to remove large banknotes have stalled.
- 32% of Israeli expenditures are made in cash, with higher rates in Arab and Haredi communities.
- Some Israelis view cash payments as a form of tax rebellion due to distrust in the government.
- Schools in Kiryat Ata were evacuated due to high benzene levels from the Bazan oil refinery.
Israeli police recently displayed thousands of 200 shekel banknotes, allegedly linked to Meital Saar, wife of the mayor of Kfar Saba. This incident highlights a broader trend of increasing cash circulation in Israel, despite government efforts to curb its use. A proposed law in the last "Arrangements Law" would have criminalized holding over 200,000 shekels in cash, a measure that did not pass. Prime Minister Netanyahu and Foreign Minister Saar have publicly advocated for removing large banknotes from circulation to combat illicit activities, but the Bank of Israel has not supported these initiatives, citing a lack of professional justification.
Despite the rise of digital payments, cash held by the public reached a record 129 billion shekels by the end of the first half of 2026. This figure represents a significant increase, with cash holdings growing by 3.5% from January to June 2026, a faster pace than in previous years. The Bank of Israel acknowledges the demand for cash, viewing it as an essential payment method, especially during emergencies. However, the article suggests that this cash is increasingly being used outside the formal banking system, potentially facilitating tax evasion and black market activities.
Data from the Bank of Israel indicates that 32% of Israeli expenditures are made in cash, with significantly higher rates in the Arab and Haredi communities compared to the general population. While this may partly stem from a lack of financial alternatives in certain sectors, the article posits that a growing sense of distrust in the government, fueled by societal divisions and the ongoing conflict, is leading some Israelis to view cash payments as a form of tax rebellion.
In other news, the Azrieli Group is converting a struggling commercial space at the entrance to Tel Aviv into Israel's first fashion museum to attract visitors. Separately, two schools in Kiryat Ata were evacuated due to high levels of benzene detected near the Bazan oil refinery, prompting environmental warnings for residents within a kilometer radius. The refinery has exceeded pollution limits multiple times, despite an approved plan for its relocation.
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