The Turkish New Lira (TRY) is the national currency of Turkey, TRY has been revalued several times in order to curb inflation, and as of June 2023, one U.S. Dollar was worth roughly 21 new lira. Turkey has experienced high inflation rates compared to peer countries. In this article, we will discuss about what is Turkish Lira, the history of Turkish Lira, and its exchange rate.

What is the Turkish Lira (TRY)?

The Turkish Lira, symbolised as ₺ and with the ISO code TRY, serves as Turkey’s official currency. In daily use, one lira divides into 100 kuruş (cents). The lira is used in everyday transactions in Turkey and holds value for international tourists and businesses due to its role in trade, tourism, and investment.

TRY through out its history, the currency has been pegged to currencies like the French franc, GBP and also USD. As of writing of this article, there is no active peg but bank of Turkey intervening when neccessary.

History of the Turkish Lira (TRY)

TRY was first introduced in 1844, the original lira was pegged to the value of gold and silver, reflecting the Ottoman Empire’s economic system. After Turkey’s independence in 1923, the Turkish Lira continued as the national currency.

 High inflation in the late 20th century led to the issuance of high-value banknotes, with denominations reaching millions.

 In 2005, Turkey introduced the New Turkish Lira (YTL) by removing six zeros from the old lira, making 1 YTL equal to 1,000,000 previous liras.

 By 2009, “New” was dropped, and the currency returned to being simply the Turkish Lira (TRY). Just like other countries, Turkey has faced some level of inflation in recent years, leading to fluctuating exchange rates. 

The Central Bank of Turkey actively manages inflation, though economic factors and international factors continue to impact the lira’s value.

Denominations of the TRY

TRY comes in various denominations, featuring coins and banknotes for a range of transactions.

Coins are divided into 1, 5, 10, 25, and 50 kuruş 1 lira coin

While banknotes includes 5, 10, 20, 50, 100, and 200 lira

These banknotes also include designs representing Turkey’s culture and history, making them distinctive.

Economic Role TRY

The Lira plays an active role in Turkey’s economy, supporting sectors like tourism, agriculture, manufacturing, and trade.

 But due to its economic ties with Europe and the Middle East, Turkey experiences a high volume of cross-border trade, with the lira facilitating local and international transactions.

Exchange Rate of the Turkish Lira (TRY)

The exchange rate for the Turkish Lira often fluctuates due to factors like inflation, trade balance, and political policies. For example, Turkey’s heavy reliance on imports and rising inflation have affected the lira’s stability, making its exchange rates with major currencies like USD and EUR vary widely.

Here’s an approximate comparison of the TRY against major global currencies:

turkish lira to usd vary widely

Conclusion

TRY is known as the national currency of Turkey, the lira is used in everyday everyday transactions in Turkey and holds value for international tourists and businesses due to its role in trade, tourism, and investment. 

It’s symbolised as ₺ and with the ISO code TRY, In daily use, one lira divides into 100 kuruş (cents),

The Central Bank of Turkey keeps an eye on inflation rate, which is like the rate at which prices go up. But Turkey relies on imports, which means they buy goods from other countries more often, and their inflation is kind of high, which has affected the lira’s stability, making its exchange rates with major currencies like USD and EUR vary widely.

Currency exchange rate turkish lira to usd is 0.029 USD