The Turkish lira is the official currency of Turkey plays a key role in the economic structure of the country. Let's look at the features of Turkish Lira cash, its uses, advantages, history and prospects.
History of the Turkish lira and its exchange rate
The TRY currency has been in effect in Turkey since October 1923, when a monetary reform was carried out — previously, another lira, the Ottoman (gold) lira, was used as the state currency. At denomination, 1 new lira was given for 1 million old lira.
From 1922 to 1923, new-minted coins were integrated, including aluminium-bronze and nickel coins. The following new coins started to be minted between 1958 and 1961 in brass, bronze and stainless steel.
In 1981, against the background of inflation, 1, 5 and 10 lire coins made of aluminium were introduced. Subsequently, higher denominations.
Initially, the Turkish lira (TRY) was linked to the US dollar, but its exchange rate was revalued every few years after WWII. Since the 70's, it has fallen continuously:
- 1966 — 1 USD = 9 TRY
- 1985 — 1 USD = 80 TRY
- 1995 — 1 USD = 43,000 TRY
- 2001 — 1 USD = 1.25 million TRY
The lira of that period was repeatedly included in the Book of Records as the world currency with the lowest value. Since 2009, a new series of coins and banknotes has been circulated, where the denomination is denoted in "new lira".
The denominations in circulation are 1, 5, 10, 25, 50 kuruş and 1 lira. Banknotes are 5, 10, 20, 50, 100 and 200 lira.
At the moment, the country has a floating exchange rate regime — the role of exchange rate anchor is played by inflation indicators.
Prospects for the development of cash lira
At the moment, the currency is not among the most promising because of political instability and high inflation. However, the government is working on it, and tourism and immigrants who are actively using TRY cash are helping a lot.
In terms of cash usage, Turkey is moving towards digitalisation of payments — cashless payments and online banking are actively developing. This is not only convenient but also helps to control financial flows.
However, cash still plays an important role in the economy, especially small and medium-sized businesses. Therefore, their abandonment is unlikely to happen in the near future.
Exchanging Turkish Lira (TRY) offline and online
The main ways of exchanging cash lira (buying or selling):
- Almost all major banks in Turkey, such as Garanti BBVA, İş Bankası, Yapı Kredi, Akbank, offer currency exchange services.
- Internet exchangers: Some of them have offices in Turkey. These services allow you to exchange Turkish Lira for other currencies at competitive rates. You can find them by using our BestChange monitor.
- Offline exchange offices are often found in tourist areas and airports.
- Post offices, hotels.
You should check rates and commissions carefully, regardless of the method you choose. They will not always be truly favourable.