The Turkish lira has had a long and tumultuous history acting as the official currency of Turkey. Dating back to the inception of its first version, the lira has undergone several major transformations. Over the course of the 20th and early 21st centuries, periodic devaluations have cultivated an impression of instability and volatility. The Turkish lira exists largely as a regional currency. It is mainly used within the borders of Turkey itself as well as in certain areas of Northern Cyprus.
Its currency code is TRY, and the currency symbol can be expressed alphabetically with the uppercase letters TL. The anchor is said to represent stability, while the upward sloped parallel lines are a reference to its upward trajectory. The lira has had a volatile history with several major devaluations and reconstructions.
Inflation was a constant challenge facing the lira throughout the 20th century. During the early years of the first Turkish lira, its value was pegged to the British pound and French franc. In , the Turkish lira pegged its currency to the United States dollar for the first time. The exchange rate of 2. From the period of to the lira was devalued numerous times; the final exchange rate of the first Turkish lira was 1,, lira to one USD. The Second Turkish Lira came into existence in and is the present form of currency used in Turkey.
The idea for the currency was championed by the Grand National Assembly of Turkey, and in , the governing body passed a law that allowed for redenomination of the lira. The law called for the removal of six zeros from the Turkish lira; the exchange rate of 1,, first Turkish lira to one second Turkish lira was adopted. The conference became commonly known as Bretton Woods. Delegates from all 44 Allied nations were in attendance.
The Bretton Woods Monetary System was the final product of the meeting, and its implementation crafted global monetary policy until the s.
Through the creation of the International Monetary Fund and the World Bank, individual countries were able to fix the exchange rates of their currencies to the USD.
However, by Turkey had issued a declaration of war against Germany and became cooperative with the Allied powers.
Managing inflationary concerns facing the lira has historically proven to be a monumental task. In order to craft monetary policy and to stay current regarding the inflationary concerns facing the lira, the CBRT regularly issues reports and forecasts regarding inflation. Quarterly inflation reports contain current targets for, and forecasts of, future inflation levels. The Monetary Policy Committee of the CBRT meets monthly on predetermined dates to make monetary policy decisions and announces those decisions promptly.
Dating back to the earliest days of the Silk Road trade route, Turkey has been instrumental in facilitating trade between the countries of the Far East and the countries of Western Europe.
Turkey has the 13th-largest economy in terms of global production and is also considered to be the largest emerging market in Europe. Key industrial sectors of the Turkish economy are the production of textiles, automobiles, electronics and cement. Borsa Istanbul is the sole futures and equity exchange operating in Turkey. The trading of equities, debt instruments, derivatives, and precious metals is facilitated via the Borsa Istanbul exchange.
Unusual trading patterns within the equities and futures markets are monitored and documented by Borsa Istanbul in an attempt to eliminate securities fraud. On the forex market, the Turkish lira is one of the more sparsely traded currencies. The lira is denominated in 1, 5, 10, 20, 50, and lira banknotes, which are printed in many different colours. Red, green, beige, violet and purple are used in various designs to mark each unique denomination.
One common characteristic of the banknotes is the portraiture of Mustafa Kemal Ataturk, the first president of Turkey, on the face of every banknote.
The opposite side contains a portrait of a historically significant Turkish personality; a different one for each denomination. Extensive security features are used in the production of each Turkish lira banknote in an attempt to prevent counterfeiting. Security devices such as holographic stripes, watermarks, security threads and latency numbers are used to ensure authenticity. Kurus are put into circulation by the Turkish State Mint, and they come in 1, 5, 10, 25 and 50 kurush denominations.
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Registered in England and Wales with Companies House company number TRY — Turkish Lira. Past Performance is not an indicator of future results. Retrieved 13 January http: Retrieved 14 January http: Retrieved 15 January http: Retrieved 14 January https:More...