Why will Turkish Lira be redenominated by dropping six zeros?
As it is known, the high inflationary process, which started in Turkey in 1970s, has led to the expression of some economic values in terms of billions, trillions or even quadrillions. In this process, cash demand in the economy was met by new banknotes in larger denominations that were put into circulation nearly every 2 years since 1981. As a result, todays highest-denominated banknote (20.000.000) is used only in Turkey. And this fact has a negative effect on the credibility of our currency. Moreover, figures with multiple zeros lead to problems in accounting and statistical records, data processing software and payment systems as well as in transactions at the cashiers office. Therefore, redenomination of Turkish Lira has become psychologically and technically essential.
