Revaluation of the Turkish Lira

Revaluation of the Turkish Lira
Yeni Türk Lirası (Turkish)

New lira banknotes and coins
ISO 4217 code TRY
Central bank Central Bank of the Republic of Turkey
 Website www.tcmb.gov.tr
User(s) Turkey Turkey (to 1 January 2009)
Northern Cyprus Northern Cyprus (to 1 January 2009)
Inflation 10.61% (Turkey, June 2008)
 Source Central Bank of the Republic of Turkey, Inflation report 2008-III
Subunit
 1/100 new kuruş
Symbol YTL
Coins 1, 5, 10, 25, 50 new kuruş, 1 new lira
Banknotes 1, 5, 10, 20, 50, 100 new lira
This infobox shows the latest status before this currency was rendered obsolete.

The new Turkish lira (Turkish: yeni türk lirası) was the currency of Turkey and the de facto independent state of the Turkish Republic of Northern Cyprus between 1 January 2005 and 1 January 2009 which was a transition period for the removal of six zeroes from the currency.[1] The new lira was subdivided into 100 new kurush (yeni kuruş). The symbol was YTL and the ISO 4217 code was TRY.

History

Because of the chronic inflation experienced in Turkey from the 1970s through to the 1990s, the old lira experienced severe depreciation. Turkey has had high inflation rates compared to other developed countries and suffered hyperinflation. From an average of 9 lira per U.S. dollar in the late 1960s, the currency came to trade at approximately 1.65 new lira per U.S. dollar in late 2001. This represented an average inflation of about 38% per year. Prime Minister Recep Tayyip Erdoğan had called this problem a "national shame". With the revaluation of the Turkish old lira, the Romanian leu (also revalued in July 2005) briefly became the world's least valued currency unit.

In late December 2003, the Grand National Assembly of Turkey passed a law that allowed for the removal of six zeroes from the currency, and the creation of the new lira. It was introduced on 1 January 2005, replacing the previous lira (which remained valid in circulation until the end of 2005) at a rate of 1 new lira = 1,000,000 old lira.

The official name of the currency is "New Turkish Lira". According to the Central Bank, the word "new" (yeni) is only a "temporary" measure.[2] A news agency reported that "new" will be removed on January 1, 2009. The same source also indicated that the banknotes will have "different shapes and sizes to prevent forgery". The issuance of a new highest denomination, 200 lira, is contemplated at the same time.[3]

Coins

Coins were introduced in 2005 in denominations of 1, 5, 10, 25 and 50 new (Yeni) kuruş and 1 new (Yeni) lira. The 1 new (Yeni) kuruş was minted in brass and the 5, 10 and 25 new kuruş in cupro-nickel, whilst the 50 new kuruş and 1 new lira are bimetallic. All coins show portraits of Mustafa Kemal Atatürk.

To the dismay of the European Central Bank, the sizes and compositions of the 50 new kuruş and 1 new lira coins clearly resemble those of the €1 and €2 coins respectively. (See comparison photo in of YTL 1 coin and €2 coin.) This could cause confusion in the eurozone. It also caused trouble to businesses using vending machines (particularly at airports) in the eurozone since a number of vending machines at the time accepted the 1 new lira coin as a €2 coin. Since €2 is worth roughly four times more, vending machines affected had to be upgraded at the expense of their owners.

Banknotes

Banknotes, referred to by the Central Bank as the "E-8 Emission Group", were introduced in 2005 in denominations of 1, 5, 10, 20, 50, and 100 new lira. Whilst the lower four denominations replaced older notes and used very similar designs, the 50 and 100 new lira notes did not have equivalents in the old currency. All notes show portraits of Mustafa Kemal Atatürk from different points of his life and images of various historical and otherwise important buildings and places in Turkey. A new series of banknotes, the "E-9 Emission Group" will enter circulation on 1 January 2009, with the E-8 group ceasing to be valid after 31 December 2009 (although still redeemable at branches of the Central Bank until 31 December 2019). The E-9 banknotes will refer to the currency as "lira" rather than "new lira", and will include a 200 lira denomination.[4]

Banknotes of Emission 8
Image Value Dimensions Main Colour Description
Obverse Reverse Obverse Reverse
1 lira 160 × 76 mm Claret Red, Blue Kemal Atatürk Atatürk Dam (as a part of Southeastern Anatolia Project)
5 lira 162 × 76 mm Pastel yellow and greenish brown Kemal Atatürk Anıtkabir, Ankara
10 lira 162 × 76 mm Red Kemal Atatürk with Flag of Turkey silhouette Piri Reis Map
20 lira 162 × 76 mm Green Kemal Atatürk Ruins of Ephesus
50 lira 152 × 81 mm Orange Kemal Atatürk Cappadocia
100 lira 158 × 81 mm Blue Kemal Atatürk Ishak Pasha Palace
These images are to scale at 0.7 pixels per millimetre. For table standards, see the banknote specification table.
Current TRY exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD INR
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD INR
From XE: AUD CAD CHF EUR GBP HKD JPY USD INR
From OANDA: AUD CAD CHF EUR GBP HKD JPY USD INR
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD INR
From Currency.Wiki: AUD CAD CHF EUR GBP HKD JPY USD INR

See also

References

  1. ↑ Official Gazette of the Republic of Turkey. "Law on the Currency of the Republic of Turkey".
  2. ↑ Central Bank of the Republic of Turkey. "Frequently Asked Questions on YTL". Retrieved 2006-09-28.
  3. ↑ Turkish Daily News (2006-09-15). "TL banknotes to be in circulation in 2009". Retrieved 2006-09-28.
  4. ↑ Türkiye Cumhuriyet Merkez Bankasi (Central Bank of the Republic of Turkey) (8 May 2007). "Announcement on the Withdrawal of New Turkish Lira Banknotes from Circulation". Official Gazette no. 26516, 8 May 2007, page 103. TCMB. Retrieved 2008-01-05.

External links

Preceded by:
First Current Turkish lira
Reason: inflation
Ratio: 1 new lira= 1,000,000 lira		 Currency of Turkey
January 1, 2005 – December 31, 2008		 Succeeded by:
Second Turkish lira
Reason: renaming
Ratio: at par
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