The Turkish lira ( turkish : Türk lirası ; sign : ₺ ; code : TRY ; numeric code : 949 ; [ 4 ] normally abbreviated as TL ) [ 5 ] is the official currentness of Turkey and Northern Cyprus. One turkish lira is subdivided into one hundred kuruş .
history [edit ]
Ottoman lira ( 1844–1923 ) [edit ]
The lira, along with the relate currencies of Europe and the Middle East, has its roots in the ancient Roman unit of measurement of slant known as the libra which referred to the Troy syrian pound of eloquent. The Roman libra adoption of the currency spread it throughout Europe and the Near East, where it continued to be used into chivalric times. The turkish lira, the french livre ( until 1794 ), the italian lira ( until 2002 ), syrian Pound, lebanese Pound and the pound whole of history in sterling ( a translation of the Latin libra ; the word “ ram ” as a unit of system of weights is even abbreviated as “ pound. ” ) are the modern descendants of the ancient currency.
Reading: Turkish lira – Wikipedia
The Ottoman lira was introduced as the chief unit of currency in 1844, with the former currentness, kuruş, remaining as a 1⁄100 subdivision. The Ottoman lira remained in circulation until the end of 1927. [ 6 ]
first turkish lira ( 1923–2005 ) [edit ]
Livre Turque ( in French ) and تورك لیراسی ( in Ottoman Turkish ) phrases used on Bothand تورك لیراسیphrases used on first-issue banknotes historical banknotes from the second, third gear and fourth issues have portraits of İsmet İnönü on the obverse side. This transfer was done according to the 12 January 1926 consequence of the official gazette [ 7 ] [ 8 ] and canceled by the Democrat Party after World War II. After periods of the lira pegged to greatest and the franc, a nail down of TL 2.8 = US $ 1 was adopted in 1946 and maintained until 1960, when the currency was devalued to TL 9 = US $ 1. From 1970, a series of hard, then soft pegs to the dollar operated as the measure of the Turkish lira began to fall. The following are based on annually averages :
- 1960s – US$ 1 = TL 9
- 1970 – US$ 1 = TL 11.30
- 1975 – US$ 1 = TL 14.40
- 1980 – US$ 1 = TL 80
- 1985 – US$ 1 = TL 500
- 1990 – US$ 1 = TL 2,500
- 1995 – US$ 1 = TL 43,000
- 2000 – US$ 1 = TL 620,000
- 2001 – US$ 1 = TL 1,250,000
- 2005 – US$ 1 = TL 1,350,000
The Guinness Book of Records ranked the turkish lira as the populace ‘s least valuable currency in 1995 and 1996, and again from 1999 to 2004. The lira ‘s value had fallen so far that one original amber lira mint could be sold for TL 154,400,000 before the 2005 reappraisal .
second Turkish lira ( 2005–present ) [edit ]
The Turkish lira has a history of accelerating loss of value relative to the euro, breaching the mark of five lira per euro in early 2018 In December 2003, the Grand National Assembly of Turkey passed a jurisprudence that allowed for redenomination by the removal of six zeros from the Turkish lira, and the creation of a new currency. It was introduced on 1 January 2005, replacing the former turkish lira ( which remained valid in circulation until the end of 2005 ) at a rate of ₺1 new lira ( ISO 4217 code “ TRY ” ) = TL 1,000,000 honest-to-god lira ( ISO 4217 code “ TRL ” ). With the reappraisal of the Turkish lira, the romanian leu ( besides revalued in July 2005 ) briefly became the world ‘s least rate currency unit. At the lapp time, the Government introduced two raw banknotes with the denominations of ₺50 and ₺100. In the conversion period between January 2005 and December 2008, the second Turkish lira was officially called Yeni Türk lirası ( “ New Turkish lira ” ). [ 13 ] The letter “ Y ” in the currency code was taken from the turkish word yeni, meaning new. It was officially abbreviated “ YTL ” and subdivided into 100 new kuruş ( yeni kuruş ). Starting in January 2009, the “ new ” score was removed from the second base Turkish lira, its official diagnose becoming just “ turkish lira ” again, abbreviated “ TL ”. All obverse sides of current banknotes have portraits of Mustafa Kemal Atatürk. Until 2016, the lapp bear for the reverse sides of all current coins, but in 2016 one-lira coins were issued to commemorate the “ martyr and veterans ” of the 2016 Turkish coup d’etat d’état try, the inverse sides of some of which picture hands holding up a turkish flag while others show in conventionalized form a collection of five-pointed stars topped by a turkish pin. [ 14 ]
2018-present currency crisis [edit ]
In 2018, the lira ‘s exchange rate accelerated deterioration, reaching a floor of TL 4.5/US $ by mid-may and of TL 4.9 a week later. Among economists, the accelerate loss of value was generally attributed to Recep Tayyip Erdoğan preventing the Central Bank of the Republic of Turkey from making the necessary pastime rate adjustments. [ 15 ] [ 16 ] Erdoğan, who claimed interest rates beyond his control to be “ the beget and founder of all evil ”, said that “ the cardinal bank ca n’t take this independence and set aside the signals given by the president of the united states. ” [ 15 ] Despite Erdogan ‘s apparent opposition, Turkey ‘s Central Bank raised pastime rates sharply. [ 17 ] As of 2020, the turkish lira continued to plummet in value, with the currency going through a process of depreciation, systematically reaching all prison term lows. The turkish lira deflated by over 400 % compared to the US dollar and the euro since 2008, largely due to Erdogan ‘s expansionist foreign policy. [ 18 ] [ 19 ] [ 20 ] [ 21 ] [ 22 ] [ 23 ] Erdoğan has tried to fix the current fiscal crisis with irregular methods of deposit. [ 24 ] [ 25 ] [ 26 ] The turkish lira recovered partially throughout early 2021 with the government ‘s rise of interest rates, until the currency began crashing though rapid stages of inflation and depreciation on 21 March 2021, after the sacking of Central Bank chief Naci Ağbal. The turkish lira on 4 June reached an all time depleted of TL 8.8 to the USD at that time, going through the worst rates in the currencies history. [ 27 ] [ 28 ] [ 29 ] [ 30 ] The turkish lira being one of the quickest collapsing currencies in 2021. [ 31 ] [ 32 ] [ 33 ] [ 34 ] The turkish lira during September 2021 reached a new low of TL 8.9 to USD. [ 35 ] [ 36 ] [ 37 ] [ 38 ] In late 2021 the Turkish lira began collapsing quickly, with the exchange rate falling 9 % against the USD, reaching an all meter low of TL 12.5 to the US dollar. [ 39 ] [ 40 ] [ 41 ] [ 42 ] [ 43 ] [ 44 ] The turkish lira continued to collapse in December, with the inflation rate reaching unobserved levels, the turkish lira collapsing to TL 14.5 to the US Dollar, losing closely all of its original value. [ 45 ] [ 46 ] [ 47 ] [ 48 ] [ 49 ] On December 17, the lira fell by 8.5 %, raising the exchange rate to TL 16.5 to the US dollar. Despite the currency crack up, Erdogan lowered the pastime rates down to 14 % from 15 %, with the lira losing half of its prize since the begin of 2021. [ 50 ] [ 51 ] [ 52 ] [ 53 ] [ 54 ]
Politics and perceptions
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In the crusade for the 2018 general election in Turkey, a widespread conspiracy theory claimed that the Turkish lira ‘s refuse was the work of a dim group, made up of Americans, English, Dutch and “ some jewish families ” who would want to deprive incumbent President Erdogan of accompaniment in the elections. [ 55 ] According to a poll from April 2018, 42 percentage of Turks and 59 percentage of governing AK Party voters saw the decline in the lira as a plot by foreign powers. [ 56 ] Turkish alien minister Mevlüt Çavuşoğlu claimed Trump ‘s wish to let the current US-Turkish tensions to drag on to the November 2018 US elections so to appeal to his christian basal and gain some points for his party. [ 57 ] The recently 2021 collapse of the Turkish lira has cost Erdogan greatly as his opinion polls are tanking, the Turkish lira currency collapsing faster than it always had in its history. Erdogan recently sacked another finance minister and replaced him with a hard-line Erdoganist and adversary of interest rates. [ 58 ] [ 59 ] [ 60 ] In a statement on 10 December 2021, the Central Bank said it had sold foreign substitution for a third gear time during December 2021, helping to arrest the lira ’ s slide closer to the 14-per-dollar commemorate. [ 61 ] The lose of value towards the Turkish lira has had a large effect on the prices of goods in Turkey, with the monetary value of bread raising 40 % since December 2021 according to the BBC. [ 62 ] The crack up has besides drastically increased the monetary value of imports. [ 63 ] [ 64 ]
Coins [edit ]
From 1 January 2009, the phrase “ newfangled ” was removed from the second Turkish lira, its official identify in Turkey becoming “ turkish lira ” again ; [ 65 ] new coins without the word “ yeni “ were introduced in denominations of 1, 5, 10, 25, 50 kuruş and 1 turkish lira. besides, the center and ring alloys of the 50 kuruş and 1 turkish lira coins were reversed .
Banknotes [edit ]
A fresh series of banknotes, the “ E-9 discharge Group ” entered 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 refer to the currency as “ turkish lira ” quite than “ fresh turkish lira ” and include a new 200-Turkish-lira denomination. [ 66 ] The new banknotes have different sizes to prevent counterfeit. [ 67 ] The independent specificity of this new series is that each appellation depicts a celebrated turkish personality, preferably than geographic sites and architectural features of Turkey. [ 68 ] The dominant color of the 5-Turkish-lira bill has been determined as “ purple ” on the second series of the current banknotes. [ 69 ]
Currency sign [edit ]
turkish lira sign Design limits The lira was in the first place symbolised as TL, inverting the characters of the Ottoman lira ‘s sign, L.T., which stood for “ Livre Turque “ in French. Historically some english lyric sources used “ T£ ” for the currentness, [ 71 ] but it is obscure whether this notation was ever used within Turkey. The current currency sign of Turkish lira was created by the Central Bank of the Republic of Turkey in 2012. The modern sign was selected after a country-wide contest. [ 72 ] The newly symbol, created by Tülay Lale, is composed of the letter ‘L ‘ shaped like a half anchor, and embedded double-striped letter ‘T ‘ angled at 20 degrees. The design created by Tülay Lale was endorsed after a country-wide contest. It was chosen as the winner from a shortlist of seven submissions to the circuit board of the Central Bank, selected from a total of 8,362 entries. The symbol resembles the first letter of the Turkish monetary whole L in the form of a one-half anchor with double stroke. [ 73 ] [ 74 ] [ 75 ] [ 76 ] [ 77 ] Prime Minister Recep Tayyip Erdoğan announced the new symbol on 1 March 2012. [ 78 ] At its unveil, Erdoğan explained the design as “ the anchor shape hopes to convey that the currentness is a ‘safe harbor ‘ while the upward-facing lines represent its rising prestige ”. [ 79 ] Faik Öztrak, vice president of the main confrontation party CHP, alleged that the new sign resembles the initials ‘TE ‘ of then-prime minister Tayyip Erdoğan in a reference point to the tughra of Ottoman sultans. [ 80 ] The new Turkish lira sign was besides criticized for allegedly showing a similarity with an inverted armenian dram sign. [ 77 ] [ 81 ] In May 2012, the Unicode Technical Committee accepted the encode of a new character U+20BA ₺ TURKISH LIRA SIGN for the currentness sign, [ 82 ] which was included in Unicode 6.2 released in September 2012. [ 83 ] On Microsoft Windows operating systems, when using Turkish-Q or Turkish-F keyboard layouts, it can be typed with the combination AltGr +T .
See besides [edit ]
References [edit ]
further read [edit ]
Category : Economy
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