Turkish lira: symbol, code, exchange rate dynamics

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Turkish lira's currency is kurush, 100 kurush equals 1 lira. This ratio was adopted as a result of the 2005 reform by the Central Bank, as a result of which the currency with the name "new Turkish lira" was introduced into circulation - a designation that was formed due to sharp inflation. The Turkish lira is today the official currency of Turkey, approved on October 29, 1923 by the reformer and founder of the modern Turkish state, Ataturk. It takes its name from the Latin word libra, which translates as "scales". This word was used as a measure of the weight of silver in the calculations of merchants.

Turkish lira symbol

In 2009, at the end of the denomination process and the transition period, the prefix "new" was officially abolished. The Turkish lira also changed from YTL to TRY. The second is official today and is used everywhere. The old designation for the Turkish lira is oftenfound in everyday life. Especially among those who found the period of denomination. It stands for Yeni Turk Liras, which means "New Turkish Lira".

Symbol and code of Turkish money

What are they? The symbol of the Turkish lira is a slightly distorted Latin letter L, crossed out twice at the top. Strikethroughs, as it were, add the Latin letter t, symbolizing the name of the country. Tulay Lale became the author in 2012 as a result of a competition held by the Central Bank of Turkey. Rather a coincidence, but it is also possible that Lale used the letters of his first and last name.

The ISO 4217 Turkish lira code is 949.

Currency exchange and ruble ratio

Turkish lira can be exchanged in almost all countries of the world. Including in Russia. There are a considerable number of exchange offices in St. Petersburg and Moscow. This information will not be superfluous for those who forgot to exchange lira for rubles while vacationing in Turkey, or changed their minds about going to this country next time. The following exchange points are located in St. Petersburg: the Hard currency exchange center on Bolshaya Konyushennaya, the Lakhta exchange center. There is only one point in Moscow, it is called "49 currencies" and is located on the street. Pushechnaya, 3.

The ratio of the Turkish lira to the ruble is estimated by Sberbank at 12.65 (at the exchange rate of the Central Bank of the Russian Federation on December 05, 2018).

Denominations of paper notes

From January 1, 2009, Turkish banknotes have denominations of 5, 10, 20, 50, 100 and 200, before that they had toassign a few zeros, but after the denomination they came to a normal form. The denomination of the currency until 2005 reached 10,000,000 lire. The Turkish authorities tried to withdraw money from circulation by charging interest on bank card transfers. But this did not bring any result, since even paying for products in a store with banknotes with a huge denomination was completely inconvenient.

Appearance of paper money

The front of all banknotes depicts the founder and later the first president of the Republic of Turkey, Mustafa Kemal Ataturk, one of the most revered people in the country. The following colors are used in the production of banknotes: brown, red, green, orange, blue, purple.

Professor and historian of science Aydin Sayily is depicted on the reverse of the 5 lira banknote. As symbols of his activities, a chain of atoms and their structure are depicted next to his portrait. The bill is 130 mm long and 64 mm wide.

Professor of Mathematics Jahid Arfa and his theorem are depicted on the 10 lira note, which is 136mm long and 64mm wide.

The 20 lira banknote has a size of 148 x 62 mm, on its reverse there is a portrait of Mimar Kemaleddin and an image of Gazi University. On the left, geometric figures are arranged in a column: a ball, a cube and a cylinder.

Famous writer Fatma Aliye Topuz is featured on the reverse of the 148 x 68 mm 50 lire note. In addition to her portrait, there are books, a pen, an inkwell and paper on the bill.

Musical instruments and notes belong to the seated figure of Rumi and the musician Buhurizade Itri. All this is depicted on the 100 lira bill, 154 x 72 mm in size.

Well, and finally, the largest banknote in Turkey - 200 lira with a size of 160 x 72 mm. The reverse depicts the poet Yunus Emre, his mausoleum, as well as roses and doves as a symbol of freedom.

Turkish lira coin denominations

In 2008, after updating the denomination of Turkish coins, they became 1, 5, 10, 25, 50 kurush and 1 lira. They are made of copper and zinc, and a nickel alloy has been added to newer ones. In circulation you can find both new and old coins. One, released in 2005, is called Yeni Turk Lirasi and Yeni Kurus, which means "new Turkish lira" and "new kurush" in translation. Other coins are called Turk Lira and Kurus. It is easy to see that only the word "new" has been removed, the denomination of both is the same.

What Turkish lira coins look like

The appearance of Turkish coins is not particularly original. This is partly due to the unpopularity of Turkish coins in general, given that the maximum denomination is only 1 lira. As in the case of paper money, the obverses feature a portrait of the founder of the country, Ataturk. There is nothing interesting on the reverse except for the face value and simple patterns.

Turkish lira exchange rate dynamics

Turkey's main budget revenues come from tourism. On the one hand, this fact cannot but rejoice, but on the other hand, on the contrary, a huge number of different types of money, withwhich tourists come, cannot but create difficulties for the national currency. The Turks themselves prefer to pay in dollars and euros, which again reduces the liquidity of Turkish money. The Turkish lira has been steadily falling for many years, the authorities are constantly trying to change the situation, but their attempts do not bring tangible results. The rate either rises or falls again, this is largely due to the activities of the Central Bank of Turkey, which very often turns on the printing press at the wrong time.

Besides, the floating exchange rate regime with an independent policy of banks at the same time and the absence of control over the interest rate enriches only the employees and owners of these same banks, but does not strengthen the national currency in favor of the interests of ordinary citizens. At the moment, the interest rate in Turkey is as much as 24%, and, according to Erdogan, it creates inflation in the economy. After all, the debt of entrepreneurs on a loan is included in the cost of all goods and services, sometimes the interest on paying a loan exceeds the costs of production and transportation. Subsequently, this situation can drive not only businesses, but also ordinary people into debt.

Latest currency news

Recently, Turkish President Erdogan said that the independent policy of the Central Bank leads to a fall in the Turkish lira, noting that inflation has stabilized after the bank was advised to cut interest rates. This statement can be safely called sensational, because the president questions one of the main economic dogmas. Once upon a timethe people of the United States were strongly opposed to the independence of the Central Bank from the government, but the decision of the Congress sentenced alternative points of view to the impossibility of becoming a reality, passing the Federal Reserve Act in 1913. From that moment on, the US Central Bank is a private corporation and can independently print money, while having independence from the state. All countries then followed the same example, but Erdogan, the president who declared the futility of membership in the European Union and NATO, continues to bend his line, which cannot but be reflected in how much the Turkish lira is worth at the moment. The conflict situation with the United States, on the one hand, allows Turkey to declare its sovereignty, and on the other hand, undermines confidence in the national currency in the short term.

On the one hand, the economic confrontation with the United States greatly undermines confidence in the Turkish economy, on the other hand, it opens up new opportunities for cooperation with other countries. In connection with an attempt in Turkey to organize a coup d'état, an American pastor Andrew Brunson was imprisoned, in response to this, Donald Trump decided to increase duties on aluminum and steel. In an attempted coup, all suspicions fall on the United States, in connection with which Recep Tayyip Erdogan decides to establish active cooperation with Russia, China and Iran. Of course, it will take a long time to establish strong ties, the process of merging with new partners cannot be quick and easy, but to strengthen the Turkishlira, this is certainly a plus, because new markets give an appreciation. Moreover, the presidents of the above countries plan to make payments not in dollars or euros, but in the national currencies of their states, which will also have a positive impact on the stability of the Turkish financial system.

In the ideal case, Turkey plans to completely abandon the commission of monetary transactions in US currency, since recently the United States has more often positioned itself as a world hegemon than a stable economic partner. The American political establishment is trying to weaken the Turkish economy in various ways, influencing it even on social networks, publishing through figureheads information about the collapse of the Turkish currency.

If you try to predict the exchange rate of the lira for many years ahead, then thanks to the possible acquisition of real financial and political independence by Turkey, the national currency should show constant growth in the future.