Türkiye will redenominate its currency on 1 January 2005, cutting six zeros from the lira. At the time, a single dollar bought about 1.5 million lira and a euro roughly 1.8 million, placing the unit among the world's lowest-valued currencies.
The central bank had been printing the new notes for several months and that week began minting kurus coins, worth one-hundredth of a new lira. Kurus had been absent from circulation for years; the smallest note in everyday use was the 50,000-lira bill, worth about three US cents, while the largest, the 20-million-lira note, covered four cinema tickets.
Officials said the change would simplify accounting, statistics-gathering, and money transfers, and hoped it would have a positive psychological effect on the economy. During 2005, old and new notes will circulate side by side, with prices marked in both, backed by a public awareness campaign.
A recent opinion poll found half of respondents unaware the changeover was taking effect in January. Fifty percent believed it would push inflation higher, and 58 percent thought it would encourage heavier credit card use. Inflation had peaked at 30 percent a year in the 1970s; the government projected 12 percent for 2004.
Historical summary. TurkishPress restated this AFP wire report, first published in August 2004, in its own words.