Bank of Israel says there’s no justification to weigh abolishing NIS 200 banknote

The Bank of Israel says there is no “professional justification” for a proposal to cancel NIS 200 banknotes as part of an effort to combat tax evasion.

Prime Minister Benjamin Netanyahu instructed the central bank and government ministries last week to examine the possibility of abolishing NIS 200 notes as a measure to combat “black money” and money laundering.

“Even though the matter has been raised, no sufficiently established professional justification to cancel any banknote has been presented,” the central bank says in a statement. “The Governor of the Bank of Israel does not intend to use his authority to work toward canceling any banknote or to change the mix of banknotes in circulation.”

“We emphasize that the NIS 200 banknote that is in circulation, similar to the other banknotes and coins, will continue to be used as usual,” the central bank says.

Earlier this month, a group of businesspeople and former senior government officials submitted a proposal to remove Israel’s largest bill from circulation in an effort to restrict the use of cash and help in the battle against tax evasion and money laundering, according to reports in the Hebrew press.