1980
A New Shekel, a First Embassy
Israel and Egypt established diplomatic relations, and the shekel replaced the Israeli lira.
- Israel and Egypt establish diplomatic relations, and ambassadors are exchanged the following month.
- The shekel comes into use, replacing the Israeli lira, amid soaring inflation.
- Terrorists infiltrate the children's house at Kibbutz Misgav Am; three Israelis, among them a toddler, are killed.
- The Knesset enacts Basic Law: Jerusalem, Capital of Israel.