13 Oct, 2007 - Israel: The next facelift for the country's banknotes, which make up 96 percent of the money in circulation,, may give new meaning to the saying "paying with plastic" after the Bank of Israel said Sunday it soon may replace the current low-quality bills with polymer, or plastic, banknotes.

The plastic in your wallet may not be a credit card after the Bank of Israel makes planned changes to the country's banknotes. "The Currency Department will be issuing the next issue of NIS 20 notes based on polypropylene, a polymer which is becoming more popular in many countries due to its durability," the central bank said in the annual report of its currency department.

The central bank is trying to replace the old NIS 20 notes lost through wear and tear and used by 10% of the public. In an effort to improve the life of the NIS 20 banknote, the currency department released an improved banknote in 2006 printed on higher quality paper with additional coating.

In addition, last year it began planning a new banknote issue series that will be issued in the next four to five years and include changes to the banknote design, improved security features and changes in the quality of banknote paper.

The report showed that banknotes and coins in the hands of the public and in bank tills, increased by 4.6% and totaled NIS 25.5 billion at the end of 2006, compared to NIS 24.4b. at the end of 2005. Out of the NIS 25.5b. held in the hands of the public, 96% of the value of the currency in circulation in 2006 were in the form of banknotes.

Last year, the use of the NIS 200 banknote became more and more prominent, accounting for 18% of total notes in circulation, up from 17%, as they were more widely distributed through ATMs. Still, the most widely used banknote continued to be the NIS 100 note, which made up 53% of all bills in circulation, while, the proportion of NIS 50 banknotes out of total notes in circulation continued to fall last year, to 19% from 20%.