What is The Currency in Turkey?

The currency in Turkey - one of Turkey's main problems has been money. Not getting it, but maintaining its value. While Turkey never suffered from hyperinflation, during the 70s and 80s it was normal to have over 30% inflation every year. As a result, by the new millennium, currency in Turkey had been severely devalued; the Turkish lira was worth less than a millionth of a dollar.

Because of this, Turkish Prime Minister Recep Tayyip Erdo?an declared the Turkish currency system to be a "national shame," and introduced a new currency in Turke called the Turkish new lira in 2005 (passing the law to introduce it in 2003) by lopping off six zeros from the old lira – one new lira was worth one million old ones. He also took steps to stabilize the currency and drastically reduce inflation, wisely seeing these as steps that would bring Turkey into line with the rest of the Western world.

He appears to have done a good job. Inflation dropped from nearly 40% in 2001 to a much more respectable 9.8% in 2006, and it appears to still be dropping. At the time of writing a new lira (or, in Turkish, yeni turk lirasi) is worth around half a euro, and about 80% of a U.S. dollar. With the currency in Turkey being more stable comes investment, and Turkey's economy appears ready to boom. In fact, at the moment the lira seems to be rising in value compared to the U.S. dollar and the euro.

The Turkish new lira comes in banknotes in denominations of 1, 5, 10, 20, 50, and 100 new lira, as well as in a one-lira coin. Like American money, it is also based on the decimal system. A new kuru is worth 1/100th of a new lira. The kuru comes in coins, in denominations of 1, 5, 10, 25, and 50 kuru. A 1-kuru coin is brass, the 5, 10, and 25-kuru coins a copper nickel blend (sort of like U.S. Quarters), and the half-lira and 1-lira coins are bimetallic. Every coin has a picture of the Ataturk, Mustafa Kemal.

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An interesting problem has arisen with the currency in Turkey, particularly with the Turkish half-lira and one-lira coins; they are approximately the same size and weight as a 1-euro and 2-euro coin. This has caused serious problems in areas that use euros, as vending machines were not distinguishing between them. Because the euro coins are worth about four times the lira based coins, vendors were forced to upgrade vending machines. This is a problem to be aware of as a tourist in either area, as it's easy to mistake the lira coins for the more valuable euros if you aren't paying close attention.

Besides Turkey, the Turkish Republic of Northern Cyprus (a small independent breakaway state on the island of Cyprus) uses the new lira and the new kuru.

The new lira will become just the lira on January 1, 2009; the notes will also be changed in shape and size as a forgery prevention measure. The Turkish Central Bank is also considering introducing a 200 lira note at the same time.

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