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Turkish lira
Found in: History of Turkey Currencies of Turkey
The lira (Turkish Turk lirasi or TL) was the currency of Turkey until 2005. For the present currency of Turkey, see Turkish new lira.
History
The lira was introduced in 1844. It replaced the kuru as the principal unit of currency, with the kuru continuing to circulate as a subdivision of the lira, with 100 kuru = 1 lira. The para also continued to be used, with 40 para = 1 kuru. Until the 1930s, the Arabic script was used on Turkish coins and banknotes, with for para, for kuru and for lira ( for "Turkish lira"). In European languages, the kuru was known as the piastre, whilst the lira was known as the livre in French.
Between 1844 and 1881, the lira was on a bimetallic standard, with 1 lira = 6.61519 grams pure gold = 99.8292 grams pure silver. In 1881, the gold standard was adopted and continued until 1914. World War I saw Turkey effectively depart from the gold standard with the gold lira being worth about nine lira in paper money by the early 1920s.
After periods pegged to the British pound and the French franc, a peg of 2.8 lira = 1 U.S. dollar was adopted in 1946 and maintained until 1960, when the currency was devalued to 9 lira = 1 dollar. From 1970, a series of hard, then soft pegs to the dollar operated as the value of the lira began to fall.
Chronic inflation from the late 1970s onward saw the Turkish lira sharply depreciate against other major currencies:
1966 — 1 U.S. dollar = 9 lira
1980 — 1 U.S. dollar = 90 lira
1988 — 1 U.S. dollar = 1,300 lira
1995 — 1 U.S. dollar = 45,000 lira
1996 — 1 U.S. dollar = 107,000 lira
2001 — 1 U.S. dollar = 1,650,000 lira
2004 — 1 U.S. dollar = 1,350,000 lira
2007 — 1 U.S. dollar = 1,260,000 (old) lira = 1.26 new lira
2008 — 1 U.S. dollar = 1,200,000 (old) lira = 1.20 new lira
In its last few years the Turkish lira stabilised and even rose against the U.S. dollar and the euro. The Guinness Book of Records ranked the lira as the world's least valuable currency in 1995 and 1996, and again in 1999 through 2004. The lira had slid in value to such an extent that one original gold lira coin could be sold for approximately 120,000,000 lira prior to the 2005 revaluation.
On January 1, 2005, a new currency, the Yeni Turk Lirasi , was introduced. The new lira was worth 1,000,000 old lira.
Coins
Between 1844 and 1855, coins were introduced in denominations of 1, 5, 10, 20 and 40 para, , 1, 2, 5, 10, 20 kuru, , , 1, 2 and 5 lira. The para denominations were struck in copper, the kuru in silver and the lira in gold. The 1 para was discontinued in 1859, with the higher copper denominations ceasing production between 1863 and 1879. In 1899, billon 5 and 10 para were introduced, followed by nickel 5, 10, 20 and 40 kuru in 1910. The silver and gold coinages ceased production as a consequence of the First World War.
In 1922 and 1923, a new coinage was introduced consisting of aluminium-bronze 100 para, 5 and 10 kuru and nickel 25 kuru. These were the last Turkish coins to bear inscriptions in the Arabic script.
In 1934, silver 100 kuru coins were struck, followed the next year by a new coinage consisting of cupro-nickel 1, 5 and 10 kuru, and silver 25 and 50 kuru and 1 lira. Aluminium-bronze 10 para coins were issued between 1940 and 1942, the last coins to bear this denomination. Nickel-brass replaced silver in the 25 kuru in 1944, with brass 1, 2, 5, 10 and 25 kuru introduced between 1947 and 1949. The silver 50 kuru and 1 lira were discontinued in 1948, with cupro-nickel 1 lira issued in 1957.
Between 1958 and 1963, bronze 1, 5 and 10 kuru and steel 25 kuru, 1 and 2 lira were introduced, followed by steel 50 kuru and 5 lira in 1971 and 1974, respectively. Aluminium replaced bronze in 1975. These coins were issued up to 1980.
In 1981, with inflation gaining pace, aluminium 1, 5 and 10 lira coins were introduced. Higher denominations followed: 20, 50 and 100 lira in 1984, 25 lira in 1985, 500 lira in 1988, 1000 lira in 1990, 2500 lira in 1991, 5000 lira in 1992, 10,000 lira in 1994, 25,000 lira in 1995, 50,000 and 100,000 lira in 1999, and 250,000 lira in 2002.
Banknotes
The Banque Imperiale Ottomane (Imperial Ottoman Bank) first issued paper currency Kaime in 1862, in the denomination of 200 kuru. The notes bore texts in Turkish and French. Notes for 1, 2 and 5 lira were introduced in 1873. In 1876, smaller denomination notes were introduced for 1, 5, 10, 20, 50 and 100 kuru. In 1908, 50 and 100 lira notes were introduced.
From 1912, the Ministry of Finance issued paper money. Initially, notes were produced in denominations of 5 and 20 kuru, , , 1 and 5 lira, followed the next year by 1 and 2 kuru, 2, 10, 25, 50, 100 and 500 lira. 1000 lira notes were introduced in 1914. In 1917, postage stamp money was issued in the form of 5 and 10 para stamps affixed to card.
In 1926, the Ministry of Finance introduced notes for the Republic of Turkey in denominations of 1, 5, 10, 50, 100, 500 and 1000 lira. These were the last notes printed with both French and Turkish (in the Arabic script) texts on them. Each note carried the portrait of Mustafa Kemal Ataturk.
Between 1937 and 1939, the Central Bank of Turkey introduced new notes with Turkish texts in the Latin alphabet, bearing the portrait of President Ismet Inonu. Inonu notes caused disputes at the time. Denominations of 2, 5, 10, 50, 100, 500 and 1000 lira were issued. 1 lira notes were reintroduced in 1942, followed by 50 kuru notes which weren't released in the country due to World War II in 1944. These two lowest denominations were replaced by coins after the War.
Ataturk reappeared on a subsequent series of notes in the early 1950s. The 2 lira notes were replaced by coins in 1960, with the same happening to the 5 and 10 lira notes in 1974 and 1981. Higher denomination notes were introduced during the 1980s and 90s: 5000 lira in 1981, 10,000 lira in 1982, 20,000 lira in 1988, 50,000 lira in 1989, 100,000 lira in 1991, 250,000 lira in 1992, 500,000 lira in 1993, 1,000,000 lira in 1995, 5,000,000 lira in 1997, 10,000,000 lira in 1999 and 20,000,000 lira in 2001. The higher values of the "E7 Emission Group" banknotes are exchangeable for new liras at a rate of 1,000,000 lira to 1 new lira at branches of the Central Bank of the Republic of Turkey until 31 December 2015, after which time they will have no value. The 50,000 lira note ceases to be redeemable on 4 November 2009, and the 100,000 lira note on 4 November 2011.
6th Emission Group
7th Emission Group
1980s series
1990-2005 series
The notes got security features. Last versions of 100 000 TL, 250 000 TL, 500 000 TL and 1 000 000 TL lost color-changing ink due to inflation.
8th Emission group
9th Emission group
See also
Economy of Turkey
Economy of the Turkish Republic of Northern Cyprus
External links
Articles about Ottoman Turkish currency (in Turkish)
Turkish Central Bank (Banknote Museum page)
Republic of Turkey coins and banknotes
This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article Turkish lira