Panic around 200-shekel bills: what economists say

Financial experts warn that the withdrawal of 200-shekel bills will hit pensioners, not shadow capital. Head of the Tax Authority Shai Aharonovich stated that the measure could bring 20–30 billion shekels to the treasury. Professor Dudi Gershon noted that 74% of cash consists of 200-shekel banknotes, while the share of digital payments has already reached 47%.

The statement by the head of the Israel Tax Authority, Shai Aharonovich, about resuming discussion on withdrawing 200-shekel banknotes from circulation has caused concern among financial experts. They warn that criminal elements will be the first to get rid of the bills, while pensioners and small businesses will suffer. Aharonovich stated at a conference in Eilat on October 19 that eliminating the large banknote is part of the fight against shadow capital and a way to avoid raising taxes, which could bring 20–30 billion shekels to the treasury. Experts Or Porria and Professor Dudi Gershon criticized the initiative, noting that 74% of cash in Israel consists of 200-shekel bills, and their withdrawal will change consumer habits. Gershon also pointed out that the share of digital payments has already grown from 5% in 2019 to 47% in 2025, and called for helping pensioners rather than passing laws.