Turkey's ๐น๐ท national fiat currency Lira has seen turbulent times as (highly volatile) recently. More and more people are opting out of Turkish Lira and diversifying into other assets & currencies to preserve their purchasing power.
Time for a thread ๐งต ๐
Time for a thread ๐งต ๐
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The Turkish lira is the official currency of Northern Cyprus and Turkey, represented by the ISO code TRY and abbreviated as TL.
The Turkish new lira is the second issue that was introduced at the beginning of 2005.
TRY is in devaluation, regularly hitting all-time lows.
The Turkish lira is the official currency of Northern Cyprus and Turkey, represented by the ISO code TRY and abbreviated as TL.
The Turkish new lira is the second issue that was introduced at the beginning of 2005.
TRY is in devaluation, regularly hitting all-time lows.
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To get a brief sense of its inflation, here are some sample yearly numbers. A monthly chart for USDTRY attached.
1960s โ US$1 = Tโค9
1970 โ US$1 = Tโค11.30
1980 โ US$1 = Tโค80
1990 โ US$1 = Tโค2,500
1995 โ US$1 = Tโค43,000
2000 โ US$1 = Tโค620,000
2005 โ US$1 = Tโค1,350,000
To get a brief sense of its inflation, here are some sample yearly numbers. A monthly chart for USDTRY attached.
1960s โ US$1 = Tโค9
1970 โ US$1 = Tโค11.30
1980 โ US$1 = Tโค80
1990 โ US$1 = Tโค2,500
1995 โ US$1 = Tโค43,000
2000 โ US$1 = Tโค620,000
2005 โ US$1 = Tโค1,350,000
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The Turkish Lira, along with the related currencies of Europe and the Middle East, has its roots in the ancient Roman unit of weight known as the libra which referred to the Troy pound of silver.
It can be thought of as a descendant of Roman Libra.
The Turkish Lira, along with the related currencies of Europe and the Middle East, has its roots in the ancient Roman unit of weight known as the libra which referred to the Troy pound of silver.
It can be thought of as a descendant of Roman Libra.
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Related currencies descending from Roman Libra were
- Turkish Lira
- French Livre
- Italian Lira
- British Pound
The Ottoman lira (sign: โค) was introduced as the main unit of currency in 1844, with the former currency, kuruล, remaining as a 1โ100 subdivision.
Related currencies descending from Roman Libra were
- Turkish Lira
- French Livre
- Italian Lira
- British Pound
The Ottoman lira (sign: โค) was introduced as the main unit of currency in 1844, with the former currency, kuruล, remaining as a 1โ100 subdivision.
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The Ottoman lira remained in circulation until the end of 1927. After periods of the lira pegged to Sterling and the French franc, a peg of Tโค2.8 = US$1 was adopted in 1946 and maintained until 1960, when the currency was devalued to Tโค9 = US$1.
Ottoman & Turkish Lira
The Ottoman lira remained in circulation until the end of 1927. After periods of the lira pegged to Sterling and the French franc, a peg of Tโค2.8 = US$1 was adopted in 1946 and maintained until 1960, when the currency was devalued to Tโค9 = US$1.
Ottoman & Turkish Lira
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From 1970, a series of hard, then soft pegs to the dollar operated as the value of the Turkish lira began to fall.
1960s โ US$1 = Tโค9
1970 โ US$1 = Tโค11.30
1980 โ US$1 = Tโค80
1985 โ US$1 = Tโค500
1990 โ US$1 = Tโค2,500
2000 โ US$1 = Tโค620,000
2005 โ US$1 = Tโค1,350,000
From 1970, a series of hard, then soft pegs to the dollar operated as the value of the Turkish lira began to fall.
1960s โ US$1 = Tโค9
1970 โ US$1 = Tโค11.30
1980 โ US$1 = Tโค80
1985 โ US$1 = Tโค500
1990 โ US$1 = Tโค2,500
2000 โ US$1 = Tโค620,000
2005 โ US$1 = Tโค1,350,000
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The Guinness Book of Records ranked the Turkish lira as the world's least valuable currency in 1995 and 1996, and again from 1999 to 2004. The lira's value had fallen so far that one original gold lira coin could be sold for Tโค154,400,000 before the 2005 revaluation
The Guinness Book of Records ranked the Turkish lira as the world's least valuable currency in 1995 and 1996, and again from 1999 to 2004. The lira's value had fallen so far that one original gold lira coin could be sold for Tโค154,400,000 before the 2005 revaluation
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In December 2003, the Grand National Assembly of Turkey passed a law that allowed for re-denomination by the removal of six zeros from the Turkish lira, and the creation of a new currency.
It was introduced on 1 January 2005, replacing the previous Turkish lira "TRL".
In December 2003, the Grand National Assembly of Turkey passed a law that allowed for re-denomination by the removal of six zeros from the Turkish lira, and the creation of a new currency.
It was introduced on 1 January 2005, replacing the previous Turkish lira "TRL".
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The Government introduced two new banknotes with the denominations of โบ50 and โบ100 around 2003. Turkish Lira had coins in various denominations also
The Government introduced two new banknotes with the denominations of โบ50 and โบ100 around 2003. Turkish Lira had coins in various denominations also
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Even after removing 6 zeros from their original liras, the currency was inflating at a steady pace. Its inflated 7x since 2003, which is staggering to say the least.
Imagine holding Lira in your bank accounts and losing so much purchasing power in a few years.
Even after removing 6 zeros from their original liras, the currency was inflating at a steady pace. Its inflated 7x since 2003, which is staggering to say the least.
Imagine holding Lira in your bank accounts and losing so much purchasing power in a few years.
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In 2018, the lira's exchange rate accelerated deterioration, reaching a level of US$4.5/TRY by mid-May and of 4.9 a week later. Among economists, the accelerating loss of value was generally attributed to Tayyip Erdoฤan preventing the Central Bank of Turkey...
In 2018, the lira's exchange rate accelerated deterioration, reaching a level of US$4.5/TRY by mid-May and of 4.9 a week later. Among economists, the accelerating loss of value was generally attributed to Tayyip Erdoฤan preventing the Central Bank of Turkey...
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from making the necessary interest rate adjustments. Usually the governments/politicians along with Central Banks are responsible to currency devaluation and inflation in countries.
Loose economic policies with low interest rates are key to currency devaluation.
from making the necessary interest rate adjustments. Usually the governments/politicians along with Central Banks are responsible to currency devaluation and inflation in countries.
Loose economic policies with low interest rates are key to currency devaluation.
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In the campaign for the 2018 general election in Turkey, a widespread conspiracy theory claimed that the Turkish lira's decline was the work of a shadowy group, made up of Americans, English, Dutch and "some Jewish families" who would want to deprive...
In the campaign for the 2018 general election in Turkey, a widespread conspiracy theory claimed that the Turkish lira's decline was the work of a shadowy group, made up of Americans, English, Dutch and "some Jewish families" who would want to deprive...
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incumbent President Erdogan of support in the elections. As of 2020, the Turkish lira continued to plummet in value, with the currency going through a process of devaluation, consistently reaching all time lows.
incumbent President Erdogan of support in the elections. As of 2020, the Turkish lira continued to plummet in value, with the currency going through a process of devaluation, consistently reaching all time lows.
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The Turkish Lira deflated by over 400% compared to the US dollar and the euro since 2008, largely due to Erdogan's expansionist foreign policy. Erdoฤan has tried to fix the current financial crisis with unorthodox methods of banking. These policies hardly worked.
The Turkish Lira deflated by over 400% compared to the US dollar and the euro since 2008, largely due to Erdogan's expansionist foreign policy. Erdoฤan has tried to fix the current financial crisis with unorthodox methods of banking. These policies hardly worked.
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The Turkish lira recovered partially throughout early 2021 with the government's rise of interest rates, until the currency began crashing though rapid stages of inflation and depreciation on March 21, 2021, after the sacking of Central Bank chief Naci Aฤbal.
The Turkish lira recovered partially throughout early 2021 with the government's rise of interest rates, until the currency began crashing though rapid stages of inflation and depreciation on March 21, 2021, after the sacking of Central Bank chief Naci Aฤbal.
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Lira was one of the quickest collapsing currencies in 2021. Although there is no clear peg, Turkey is actively intervening in the currency markets and is seeking to manipulate the value of the TRY. This is essentially the reason for its inflation and eventual demise.
Lira was one of the quickest collapsing currencies in 2021. Although there is no clear peg, Turkey is actively intervening in the currency markets and is seeking to manipulate the value of the TRY. This is essentially the reason for its inflation and eventual demise.
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Currently, there are banknotes in denominations of 5 TRY, 10 TRY, 20 TRY, 50 TRY, 100 TRY, and 200 TRY notes in circulation, in addition to 1, 5, 10, 25, and 50 kurus coins (100 kurus is one lira) and 1 lira coins.
Currently, there are banknotes in denominations of 5 TRY, 10 TRY, 20 TRY, 50 TRY, 100 TRY, and 200 TRY notes in circulation, in addition to 1, 5, 10, 25, and 50 kurus coins (100 kurus is one lira) and 1 lira coins.
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TRY dropped more than 20% against the US dollar on August 10, 2018, due to a mix of geopolitical and economic problems surrounding Turkey. In addition to suffering from growing inflation and government pressure to hold interest rates down, the country faced a debt crisis...
TRY dropped more than 20% against the US dollar on August 10, 2018, due to a mix of geopolitical and economic problems surrounding Turkey. In addition to suffering from growing inflation and government pressure to hold interest rates down, the country faced a debt crisis...
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that threatened to bring more pressure on its economy and the currency. TRYโs fallen by more than 400% since 2008 relative to the US dollar and the British pound.
that threatened to bring more pressure on its economy and the currency. TRYโs fallen by more than 400% since 2008 relative to the US dollar and the British pound.
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An economic crisis in 2001 led to the devaluation of Turkey's lira, and a wave of economic reforms occurred in 2005.3 State-owned businesses, such as telecommunications companies and oil refineries, were privatized and the central bank ran a tight monetary policy...
An economic crisis in 2001 led to the devaluation of Turkey's lira, and a wave of economic reforms occurred in 2005.3 State-owned businesses, such as telecommunications companies and oil refineries, were privatized and the central bank ran a tight monetary policy...
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to restrict spending and ensure inflation did not destroy economic gains.
Before these economic reforms took place, Turkey's economy relied heavily on foreign aid as about 80% of Turkey's GDP was external debt.
to restrict spending and ensure inflation did not destroy economic gains.
Before these economic reforms took place, Turkey's economy relied heavily on foreign aid as about 80% of Turkey's GDP was external debt.
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Moreover, Turkey's external debt as a share of GDP grew to a record 62.8% in 2020. In several instances Turkish government had apparently also ordered its banks to keep foreign investors from exiting lira trades. This further reduces peoples confidence in the currency.
Moreover, Turkey's external debt as a share of GDP grew to a record 62.8% in 2020. In several instances Turkish government had apparently also ordered its banks to keep foreign investors from exiting lira trades. This further reduces peoples confidence in the currency.
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Due to volatility and flight for safety, people started investing into #Bitcoin and cryptocurrencies to preserve their purchasing power.
High earnings (60%) and curiosity (37%) are primary motivations for Turkish citizens to use cryptocurrencies.
cointelegraph.com/news/crypto-usโฆ
Due to volatility and flight for safety, people started investing into #Bitcoin and cryptocurrencies to preserve their purchasing power.
High earnings (60%) and curiosity (37%) are primary motivations for Turkish citizens to use cryptocurrencies.
cointelegraph.com/news/crypto-usโฆ
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