Turkey needs bank notes of larger denominations after inflation soars

Turkey needs bank notes of larger denominations after a surge in annual inflation to a two-decade high, the Dünya newspaper reported on Monday.

The largest denominated notes of 100 ($6.65) and 200 liras are used in 88 percent of all transactions compared with 40.6 percent 13 years ago, when the bills were introduced, Dünya said citing central bank data.

Consumer price inflation in Turkey reached 69.97 percent in April, the state statistics office said last week. That was the highest level among industrialised countries and major emerging markets and is almost double the rate of 36.08 percent in December. The lira lost 44 percent of its value against the dollar in 2021 and has fallen by more than 10 percent this year.

Consumer price inflation was 6.13 percent in April 2009, when 200 TL denominations in total circulation stood at 12.2 percent of total notes. The share of 200 TL banknotes in the amount of money circulated has risen to 43.2 percent, Dünya said.

The lira was trading down 0.3 percent at 14.99 per dollar on Monday. It had traded stronger than 2 per dollar a decade ago.

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