For currency exchange you could use either the bank or the currency exchange offices, but you are probably best to go with the ATM option which is the most convenient.
All banks exchange currency in Israel. The rates are probably not the best you can get because of the commission, but it is convenient and reliable. The main banks in Israel are: Hapoalim, Leumi and Discount.
There are many currency exchange offices along Hayarkon and Ben Yehuda streets, as well as other central areas. Their rates are usually similar to those of the bank, but their working hours are much more convenient.
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