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    Central Bank presents the new Turkish banknotes

    HotNewsTurkey Staff
    03.10.2008 - 10:35 | Son Güncelleme:

    Turkish Central Bank Governor Durmus Yilmaz introduced the new Turkish paper banknotes and coins on Friday and said the biggest banknote would be 200 lira while the smallest one would be 5 lira. (UPDATED)

    The new banknotes will be in circulation as of Jan. 1, 2009, Yilmaz said.       


    Each banknote will have a portrait of Ataturk, the founder of the modern Republic of Turkey, on one side, and there will be portraits of other prominent Turks on the other side of the banknotes, Yilmaz also said.


    The Turkish Central Bank dropped six zeros from Turkish Lira (TL) three years ago as inflation in the country fell from high rates and removed it from circulation. Turkey replaced this currency with new Turkish Lira (YTL), which will be completely phased out by the end of 2009.


    The central bank is concluding this process by dropping the "new" from the currency and returning to original TL.


    The value of the Turkish lira currency will not be adjusted with this latest issuing of banknotes and coins.



    Yilmaz predicted that inflationist pressure triggered by the global financial crisis would have only a minimal effect on the new currency.


    "The government is determined to keep up the struggle against inflation," Prime Minister Tayyip Erdogan said at a press conference to present the new banknotes and coins. "We continue to keep inflation under control despite some internal and external problems."


    Tight monetary policies helped Ankara bring inflation down from 29.7 percent in 2002 to 7.7 percent in 2005.


    But the government missed its inflation targets in the past two years. In 2006, inflation was 9.65 percent, opposed to a 5.0-percent target, while 2007 saw inflation hit 8.39 percent, nearly double the 4.0-percent target.


    The rate stood at 11.77 percent in August, well above the 4.0-percent target for 2008, pushed up by global financial jitters and rising oil and food prices.


    Yilmaz said the year-end inflation was still likely to be single-digit.


    "As long as we maintain tight monetary policies... we can easily weather this (global) turbulence, but not being affected at all is impossible," the central bank governor said. "We do not believe that its effect on the currency will be very abrasive."


    Photo: AFP




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