In September, 1923, the formal start of the British Mandate for Palestine went into effect. At that time, there was no stable economic system. There were a great number of coins and currencies used from different countries: Turkish, American, numerous European, Russian and Indian. Stamps were sometimes used. Barter was common. Something had to be done. On July 24, 1922, in London, the League of Nations formalized the Palestine Mandate, by issuing a covenant that had 28 articles. Article 22 was concerned with the economy. It read: "English, Arabic and Hebrew shall be the official languages of Palestine. Any statement in Arabic on stamps or money in Palestine shall be repeated in Hebrew and any statement or inscription in Hebrew shall be repeated in Arabic."

With the adoption of this covenant, the basis for the monetary system was formalized. This led the British to create the Palestine Currency board to develop and design the coins and currency for Palestine.

Beginning in 1948 and continuing today, many Israeli coins echo their Palestine Mandate forebears by depicting agricultural themes to emphasize the triumph of the pioneers in making a fallow desert bloom. Grapes, dates, palms, barley spears and pomegranates are common designs. Additional themes include, but are not limited to: the Hanukkah menorah, various birds and animals, and quotes from the Bible. The currency often depicts the past leaders of Israel, such as Golda Meir and the pre-state founders of the nation. Mint sets are issued annually and commemorative coins are regularly released. There is a solid base of collectors and many coin shows include Israeli coins and currency.

Several important contrasts can be seen between Palestine Mandate and Israeli coins. While the Palestine Mandate coins had a singular theme (olives), modern Israeli coins have a plethora of designs and now represent the entire spectrum of Jewish existence. Also, while the Palestine Mandate Currency Board authorized a gold coin equal to £1, none were ever minted. Conversely, Israel issues gold coins regularly.