Old Turkish Lira (Türk Lirasi "TL") has been replaced by New Turkish Lira (Yeni Türk Lirası "YTL") on January 1, 2005. The New Turkish Lira is equivalent to one million (old) Turkish Liras (TL). In other words, six zeros have been dropped from the old TL to make the YTL. Other than this, the Turkish currency was not revalued or devalued.
In other words, a product which cost you 1 million Turkish Liras (1,000,000 TL) will cost you 1 YTL (Yeni Lira) with the new currency.
Why did Turkish Government decide to change the currency to New Turkish Lira ?
- High inflationary process, which started in Turkey in 70s, had led to the expression of economic values in terms of billions, trillions and even quadrillions.
- Cash demand in economy was met by new banknotes in larger denominations that were put to circulation almost every 2 years since 1981.
- Figures with many zeros lead to problems in accounting and statistical records, IT, payment systems and transactions at the cashiers office.
- Many countries(49) deleted zeros from their currency but so far Turkey did not. A few examples: Brazil deleted 18 zeros in 6 operations; Argentina: 13 zeros in 4 operations; Israel: 9 zeros in 4 operations; Poland: 4 zeros and Greece: 3 zeros in one operation.
- In conclusion, YTL process has been a technical necessity.
Resource: Can Okay, London Representative, Central Bank of Turkey
Below is a sample of Old Turkish Lira Bills:
And some New Turkish Lira Bills :
1 New Turkish Lira (1 YTL)
5 New Turkish Lira (5 YTL)
10 New Turkish Lira (10 YTL)