Today there are untold *official* money changers, at least in Jerusalem.
I imagine that they can be found in other cities in Israel as well.
Unlike banks which charge a minimum fee for changing foreign currency, and
believe it or not, US $ are still foreign currency in Israel,money
changers have no minimum fee. The rates at money changers are lower than
in the banks, but for small amounts one does get a descent amount of
Israeli Shekels,usually more than in a bank.

I don't believe that it is that great a hardship for someone in the big
cities to convert $, or any other major currency. When my kids get
birthday presents in US $ cash, I generally let them buy what they
want, paying in Shekels and keeping the dollars for myself. If and when
I need to replenish my bank overdraft, I then convert at one time, at one
of these money changers, whatever dollar cash reserve I have accumulated.
(Non Israelis may not understand what I mean by replenishing my bank
overdraft, but I'm sure Israelis will.)

Nachum Tuchman
Tekoa, Israel