The bank's headquarters is located in Kiryat HaMemshala in Jerusalem with a branch office in Tel Aviv.

The Bank of Israel has, under Article 41 and 44 of its Statute, the exclusive right to issue Israeli Shekel banknotes and coins.

The committee established the aim for the bank to be the stabilization of the currency, the keeping of high levels of production, employment and earnings.

The foreign experts advised to grant the bank of Israel a standing independent from the ministry of finance, in order to avoid political influences on decisions and the handing out of debt to different sectors.

It was advised the bank would be managed by committee members representing the various sectors in the Israeli public.

In the end it was decided to grant the central bank limited independence, but according to the law it was obligated to cover government expenditure when needed.

In 1966, the economy experienced a severe recession, and the Bank of Israel was forced to adapt its policy to such a situation for the first time.

The Bank of Israel faced unprecedented situations, such as rampant inflation (14% in 1972) and increased public spending following the Six-Day War.

The Yom Kippur War and the ensuing energy crisis exacerbated economic problems, inflation, deficits in the balance of payments, and the pace of devaluations.

As governor he had to deal with the severe economic situation that the economy had fallen into due to rampant inflation.

In the early eighties, inflation spiraled out of control, reaching peaks unprecedented in the country's history, and price hikes were a routine matter.

In 1985, a comprehensive new plan was adopted - the Economic Stabilization Plan, prepared by treasury officials with the assistance of prominent economists from academia, led by Prof. Michael Bruno, accompanied by renowned economists from abroad including Prof. Stanley Fischer.

The stabilization plan took into account components of a comprehensive rehabilitation plan, and its essence included: significant cuts in the government budget (mainly through noticeable reductions in subsidies and other government expenditures); a decrease in real wages (aimed at reducing local demand, increasing export competitiveness, and preventing severe unemployment growth); high interest rates and stabilization of the exchange rate at the new level for as long as possible; and freezing prices administratively for a limited period.

As a result of the plan's implementation, which received full support from the government, inflation dropped to single digits (the amendment to the law greatly assisted in this), and the bank's position was significantly strengthened.

David Klein was appointed as the seventh governor in 2000 and continued the path of preceding governors: implemented monetary reforms, managed a tough monetary policy, initiated efforts to transfer authority over salary agreements to the Treasury, and liberalized the foreign currency market.

The Treasury alleged that the salary agreements in the Bank of Israel deviated from the norm in public service.

She continued her predecessors' policies both in deepening monetary control and in integrating Israel into the global economy.