DEFINITION of 'TRY (Turkish New Lira)'
TRY is the abbreviation for the Turkish new lira, the currency for Turkey and the Turkish Republic of Northern Cyprus. The Turkish new lira comprises 100 new kurus and is often presented with the symbol YTL. The Turkish new lira was first introduced at the beginning of 2005 at an amount equivalent to 1 million Turkish old lira by passing a law that removed the last six zeros from the currency.
BREAKING DOWN 'TRY (Turkish New Lira)'
The Turkish new lira came as the eighth series of banknotes in the history of Turkey as a republic. Denominations of banknotes were 1, 5, 10, 20, 50 and 100 Turkish new lira. This series stopped printing in 2010 and should lose its redemption value once the 10-year redemption period closes.
The ninth issue of banknotes, authorized for circulation in 2009, dropped the name "new" from the currency. A second series of higher-value banknotes went into use in 2012. Every banknote has a portrait of Mustafa Kemal Atatürk, the first president of the Republic of Turkey, on the front. The back of each bill shows another important figure in Turkish history, such as architect Mimar Kemaleddin on the 20 lira note, musician Buhurizade Mustafa Efendi on the 100 lira bill and poet Yunus Emre on the 200 lira note.
Colors of the Turkish new lira include violet, blue, red, orange and green. The General Directorate of Banknote Printing Plant, in operation since 1958, creates Turkey's currency. As of April 2016, 1 Turkish new lira is worth approximately 35 cents. Inversely, $1 is around 2.8 liras.
History of Turkey's Currency and Economy
The first currency of the Republic of Turkey came out in December 1927. Shortly thereafter, the legislature approved the creation of a national bank to oversee currency production. The first banknotes had Arabic letters as the script, and the second issue of bills, created in 1937, featured a Latinized alphabet.
The six-zero banknotes came into circulation starting in 1979 and went until 2002. After these bills, the Turkish new lira went into circulation. The highest bills created by the Turkish government included denominations of 1 million, 5 million, 10 million and 20 million lira. After the change to Turkish new liras, six of the zeros were dropped for the newer currency.
An economic crisis in 2001 led to the devaluation of Turkey's lira, and a wave of economic reforms occurred in 2005. State-owned businesses, such as telecommunications companies and oil refineries, were privatized, and the central bank ran a tight monetary policy to ensure inflation did not destroy any economic gains. Before these economic reforms took place, Turkey's economy relied heavily on foreign aid as about 80% of Turkey's GDP was foreign debt.