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A new currency unit becomes effective in Turkey from 1 January 2005.
The new currency unit is YTL, which stands for Yeni Türk Lirasi, or in English, New Turkish Lira. There is also to be a smaller unit called YKR, or Yeni Kurus.
Parliament passed the act for YTL on 31 January 2004 allowing six zeros to be dropped from the Turkish Lira as we know it to make the New Turkish Lira.
What is the rationale behind the YTL?
Very high inflation which started in Turkey in the 1970s has led to economic values being expressed in terms of billions, trillions, and even quadrillions.
Cash demand was met by creating new banknotes in larger and larger denominations almost every second year since 1981.
Numbers with lots of zeros have lead to major problems in accounting and statistical records, IT payment systems and transactions at cashier’s offices.
Many countries including Brazil, Argentina, Israel, Poland and Greece have deleted zeros from their currency so Turkey is not alone.
The YTL is a technical necessity for Turkey just as it has been for many other countries worldwide.
Why 1 January 2005?
As part of the transition to single figure inflation, the year 2005 is believed to be the best time for managing this change. This is to be done at the beginning of a new fiscal year to avoid a dual–record system and the extra burden of preparing interim financial statements.
All documents will be prepared in TL and accounting records will be in TL until 31 December 2004. These records and documents will be kept as they are.
On 1 January 2005 all accounting data will be recorded in YTL regardless of the fact that both TL and YTL will be in circulation during 2005.
Invoices etc which refer to periods before 1 January 2005 will also be recorded in YTL.
Balance sheets dated 31 December 2004 will be reorganized for YTL on 1 January 2005.
YTL bank notes: 1, 5, 10, 20, 50 and 100
Coins: 1, 5, 10, 25, 50 New Kurus and 1 New Lira
The exchange rates for YTL, to be published daily by the Central Bank of Turkey, will be similar to the following:
1 USD 1.4260 YTL
1 Danish Krone 0.23814 YTL
1 Euro 1.82565 YTL
Both TL and YTL bank notes and coins will be in circulation during 2005. TL bank notes will be withdrawn from circulation from 1 January 2006.
After 2006, “New” will be dropped from the name of the currency and YTL will once again become TL.
The new currency unit is YTL, which stands for Yeni Türk Lirasi, or in English, New Turkish Lira. There is also to be a smaller unit called YKR, or Yeni Kurus.
Parliament passed the act for YTL on 31 January 2004 allowing six zeros to be dropped from the Turkish Lira as we know it to make the New Turkish Lira.
What is the rationale behind the YTL?
Very high inflation which started in Turkey in the 1970s has led to economic values being expressed in terms of billions, trillions, and even quadrillions.
Cash demand was met by creating new banknotes in larger and larger denominations almost every second year since 1981.
Numbers with lots of zeros have lead to major problems in accounting and statistical records, IT payment systems and transactions at cashier’s offices.
Many countries including Brazil, Argentina, Israel, Poland and Greece have deleted zeros from their currency so Turkey is not alone.
The YTL is a technical necessity for Turkey just as it has been for many other countries worldwide.
Why 1 January 2005?
As part of the transition to single figure inflation, the year 2005 is believed to be the best time for managing this change. This is to be done at the beginning of a new fiscal year to avoid a dual–record system and the extra burden of preparing interim financial statements.
All documents will be prepared in TL and accounting records will be in TL until 31 December 2004. These records and documents will be kept as they are.
On 1 January 2005 all accounting data will be recorded in YTL regardless of the fact that both TL and YTL will be in circulation during 2005.
Invoices etc which refer to periods before 1 January 2005 will also be recorded in YTL.
Balance sheets dated 31 December 2004 will be reorganized for YTL on 1 January 2005.
YTL bank notes: 1, 5, 10, 20, 50 and 100
Coins: 1, 5, 10, 25, 50 New Kurus and 1 New Lira
The exchange rates for YTL, to be published daily by the Central Bank of Turkey, will be similar to the following:
1 USD 1.4260 YTL
1 Danish Krone 0.23814 YTL
1 Euro 1.82565 YTL
Both TL and YTL bank notes and coins will be in circulation during 2005. TL bank notes will be withdrawn from circulation from 1 January 2006.
After 2006, “New” will be dropped from the name of the currency and YTL will once again become TL.
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