Major Currencies Questions Medium
The history of the Turkish lira dates back to the establishment of the Republic of Turkey in 1923. Prior to this, the currency used in the region was the Ottoman lira, which was in circulation during the time of the Ottoman Empire.
In 1923, as part of the modernization efforts led by Mustafa Kemal Atatürk, the Turkish lira was introduced as the official currency of the newly formed republic. The initial exchange rate was set at 1 Turkish lira to 100 kurush, which was the subunit of the currency.
Throughout its history, the Turkish lira has undergone several changes and transformations. In 1930, the currency was revalued, with 1 new Turkish lira being equivalent to 10,000 old Turkish lira. This revaluation aimed to stabilize the currency and combat hyperinflation.
In 2005, another major change occurred with the introduction of the "New Turkish lira" (Yeni Türk Lirası). The new currency was introduced to remove six zeros from the old Turkish lira, as a response to high inflation rates. The exchange rate was set at 1 new Turkish lira to 1 million old Turkish lira.
However, in 2009, the "New" was dropped from the currency's name, and it became known simply as the Turkish lira once again. This change aimed to reinforce the stability and confidence in the currency.
In recent years, the Turkish lira has faced challenges, including periods of high inflation and fluctuations in its value against other major currencies. These challenges have been influenced by various factors, such as political instability, economic imbalances, and external shocks.
Overall, the history of the Turkish lira reflects the economic and political developments in Turkey, as well as the efforts to maintain stability and confidence in the currency.