diff --git a/custom_components/boi_exchange_rates/__init__.py b/custom_components/boi_exchange_rates/__init__.py
new file mode 100644
index 0000000..9aae775
--- /dev/null
+++ b/custom_components/boi_exchange_rates/__init__.py
@@ -0,0 +1,70 @@
+import asyncio
+from datetime import timedelta
+import logging
+
+from homeassistant.config_entries import ConfigEntry
+from homeassistant.core import HomeAssistant
+from homeassistant.helpers.update_coordinator import DataUpdateCoordinator, UpdateFailed
+
+from .api import BankOfIsraelAPI
+
+_LOGGER = logging.getLogger(__name__)
+
+DOMAIN = "boi_exchange_rates"
+
+PLATFORMS = ["sensor"]
+
+async def async_setup(hass: HomeAssistant, config: dict):
+    """Set up the Bank of Israel Exchange Rates component."""
+    hass.data[DOMAIN] = {}
+    return True
+
+async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry):
+    """Set up Bank of Israel Exchange Rates from a config entry."""
+    currencies = entry.options.get("currencies", [])
+    hass.data[DOMAIN] = {"currencies": currencies}
+    api = BankOfIsraelAPI(hass, DOMAIN)
+
+    coordinator = DataUpdateCoordinator(
+        hass,
+        _LOGGER,
+        name="exchange_rate",
+        update_method=api.get_exchange_rates,
+        update_interval=timedelta(hours=3),
+    )
+
+    await coordinator.async_config_entry_first_refresh()
+
+    hass.data[DOMAIN][entry.entry_id] = {
+        "coordinator": coordinator,
+        "currencies": currencies,
+        "sensors": [],  # Initialize empty sensor list
+    }
+
+    entry.async_on_unload(entry.add_update_listener(update_listener))
+
+    # Setup sensor platform
+    hass.async_create_task(
+        hass.config_entries.async_forward_entry_setup(entry, "sensor")
+    )
+
+    return True
+
+async def async_unload_entry(hass: HomeAssistant, entry: ConfigEntry):
+    """Unload a config entry."""
+    unload_ok = all(
+        await asyncio.gather(
+            *[
+                hass.config_entries.async_forward_entry_unload(entry, platform)
+                for platform in PLATFORMS
+            ]
+        )
+    )
+    if unload_ok:
+        hass.data[DOMAIN].pop(entry.entry_id)
+
+    return unload_ok
+
+async def update_listener(hass, entry):
+    """Handle options update."""
+    await hass.config_entries.async_reload(entry.entry_id)