Turkish lira

Turkish lira Türk lirası (Turkish)
Gold lira in Ottoman Empire
ISO 4217 Code	TRL
User(s)	Turkey and the self-proclaimed Turkish Republic of Northern Cyprus
Subunit
1/100	kuruş
1/4000	para
Symbol	TL
Coins	5000, 10,000, 25,000, 50,000, 100,000, 250,000 lira
Banknotes	250,000, 500,000, 1,000,000, 5,000,000, 10,000,000, 20,000,000 lira
Central bank	Central Bank of the Republic of Turkey
Website	www.tcmb.gov.tr
This infobox shows the latest status before this currency was rendered obsolete.

The lira (Turkish Türk lirası 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 kuruş as the principal unit of currency, with the kuruş continuing to circulate as a subdivision of the lira, with 100 kuruş = 1 lira. The para also continued to be used, with 40 para = 1 kuruş. Until the 1930s, the Arabic script was used on Turkish coins and banknotes, with پاره for para, غروش for kuruş and ليرا for lira (تورك ليراسي for "Turkish lira"). In European languages, the kuruş 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

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. 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 Türk Lirası (YTL, ISO 4217: TRY), was introduced. The new lira was worth 1,000,000 old lira.

Coins

40 para coin (1918)

Between 1844 and 1855, coins were introduced in denominations of 1, 5, 10, 20 and 40 para, ½, 1, 2, 5, 10, 20 kuruş, ¼, ½, 1, 2½ and 5 lira. The para denominations were struck in copper, the kuruş 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 kuruş 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 kuruş and nickel 25 kuruş. These were the last Turkish coins to bear inscriptions in the Arabic script.

In 1934, silver 100 kuruş coins were struck, followed the next year by a new coinage consisting of cupro-nickel 1, 5 and 10 kuruş, and silver 25 and 50 kuruş 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 kuruş in 1944, with brass 1, 2½, 5, 10 and 25 kuruş introduced between 1947 and 1949. The silver 50 kuruş and 1 lira were discontinued in 1948, with cupro-nickel 1 lira issued in 1957.

Between 1958 and 1963, bronze 1, 5 and 10 kuruş and steel 25 kuruş, 1 and 2½ lira were introduced, followed by steel 50 kuruş 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

Ottoman 100-lira specimen note

The Banque Imperiale Ottomane (Imperial Ottoman Bank) first issued paper currency in 1862, in the denomination of 200 kuruş. 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 kuruş. 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 kuruş, ¼, ½, 1 and 5 lira, followed the next year by 1 and 2½ kuruş, 2½, 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 Atatürk.

1000 TL note of the 1950s-1970s.

10,000 lira note

1 million lira

Reverse of the 20 million lira banknote (replaced by the 20 new lira note)

Between 1937 and 1939, the Central Bank of Turkey introduced new notes with Turkish texts in the Latin alphabet, bearing the portrait of President İsmet İnönü. Denominations of 2½, 5, 10, 50, 100, 500 and 1000 lira were issued. 1 lira notes were reintroduced in 1942, followed by 50 kuruş notes in 1944. These two lowest denominations were replaced by coins after World War II. Atatürk reappeared on a subsequent series of notes in the early 1950s. The 2½ 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.

See also

• Economy of Turkey
• Economy of the Turkish Republic of Northern Cyprus

References

External links

• Don's World Coin Gallery - Turkey
• Ron Wise's World Paper Money - Turkey ^{Mirror site}
• Tables of Modern Monetary Systems by Kurt Schuler - Asia ^{Mirror site}
• The Global History of Currencies - Turkey
• Global Financial Data data series - Turkey New Lira
• Global Financial Data currency histories table ( Microsoft Excel format)
• Articles about Ottoman Turkish currency (in Turkish)
• Turkish Central Bank (Banknote Museum page)
• Ottoman Empire coins
• Republic of Turkey coins and banknotes

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