Why has the Turkish government decided to drop 6 zeros from the lira?
The Turkish government decided on the change for three main reasons: a) Practical: Dealing with tens, hundreds, thousands and millions is far easier and manageable than dealing with millions, billions, trillions and quadrillions. The only people not happy with the change were the calculator manufacturers! b) Technical: The multiple digits caused problems with accounting, data processing and statistical software designed for smaller currencies. Petrol station signs also could not display all the digits for the fuel prices. c) Psychological: Modern Turkey has had a history of hyperinflation. Rare has a year past when the inflation rate was less than 30%(!). In the last 30 years the lira has devalued from 14 to 1,500,000 for USD $1. At one stage a few years ago, the lira was over 1,800,000 to USD $1. The hyperinflation has gone and inflation is currently below 10%. Removing the zeros will help wipe away the past and hopefully, start a new era of economic confidence in Turkey; a new era wh
