Türkiye entered 2005 with a redenominated currency, replacing the old lira with the New Turkish Lira (YTL) at a rate of one million to one. The move retired the 20-million-lira note, which had held the distinction of being the world's highest denomination in circulation.
At launch the YTL traded at roughly 0.74 US dollars or 0.55 euros. Old banknotes remained legal tender through 31 December 2005, with retailers required to display prices in both denominations during that period. New bills carry the same color scheme as their predecessors to ease the changeover.
The redenomination followed Türkiye's emergence from a severe 2001 financial crisis managed under an IMF austerity program. Inflation had fallen to about 10 percent, its lowest level in nearly 30 years, and the government aimed to bring it to four percent by the end of 2007. A new three-year IMF standby arrangement was expected to release a further $10 billion.
A central bank survey in October found that two-thirds of respondents considered the reform necessary, though 56 percent said they expected initial difficulty with conversions. The redenomination also restored the kurus, a coin subdivision that had vanished from everyday use for more than two decades, with 100 kurus to the new lira.
Historical summary. TurkishPress restated this AFP wire report, first published in January 2005, in its own words.