Understanding Euro Turkish Lira Currency and Its Exchange Rates

The Euro Turkish Lira currency is a fascinating topic, and understanding it can be a bit tricky, but don't worry, I'm here to break it down for you.

The Turkish Lira is the official currency of Turkey and is abbreviated as TRY. It's a fiat currency, meaning its value is determined by supply and demand in the foreign exchange market.

In 2005, Turkey adopted the New Turkish Lira, which replaced the old Turkish Lira at a rate of 1 new lira to 1.7 million old liras. This change was made to combat inflation and stabilize the economy.

The exchange rate between the Turkish Lira and the Euro is crucial for tourists and businesses alike, as it affects the cost of goods and services.

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The Ottoman lira was introduced in 1844 as the main unit of account, with the kuruş remaining as a 1⁄100 subdivision.

It remained in circulation until the end of 1927. The kuruş was a subdivision of the Ottoman lira, making it a smaller unit of currency.

In 2005, the Turkish lira was redenominated by removing six zeros, creating a new currency called the Turkish lira (TRY). This change was made to simplify the currency and make it more manageable.

The old Turkish lira (TRL) was replaced at a rate of 1 new Turkish lira (TRY) equaling 1,000,000 old Turkish lira (TRL).

The Ottoman lira was introduced as the main unit of account in 1844. It replaced the former currency, kuruş, which remained as a 1⁄100 subdivision.

The Ottoman lira was used for nearly 80 years, circulating until the end of 1927.

The Turkish lira has undergone significant changes since 2005. In that year, the Grand National Assembly of Turkey passed a law allowing for redenomination by removing six zeros from the Turkish lira.

The new currency, also known as the second Turkish lira, was introduced on January 1, 2005, replacing the previous Turkish lira at a rate of YTL 1 = TL 1,000,000 in old lira.

The second Turkish lira was officially called Yeni Türk lirası, or "New Turkish lira", until January 2009. It was subdivided into 100 new kuruş.

From 2005 to 2008, the Government introduced new banknotes with denominations of ₺50 and ₺100. Since 2012, 9 different ₺1 circulating commemorative coins have been introduced.

The Turkish lira is currently subdivided into 100 kuruş. The ISO code for the Turkish lira is TRY.

Here's a comparison of the Turkish lira to the Euro:

The Turkish lira has undergone significant changes since 2005, including the introduction of new banknotes and coins.

The Turkish lira has been through a tumultuous time, with its value plummeting over 400% since 2008 due to the country's expansionist foreign policy and unorthodox banking methods. The lira's exchange rate reached an all-time low of ₺16.5 to the US dollar in December 2021.

The currency crisis was exacerbated by the sacking of Central Bank chief Naci Ağbal in March 2021, which led to a rapid decline in the lira's value. The lira continued to collapse in 2022, with the official inflation rate reaching 83%.

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Here's a brief overview of the lira's recent performance, based on daily updates:

The lira began to recover in 2023, with the central bank increasing interest rates under the guidance of Mehmet Şimşek and Hafize Gaye Erkan. By the end of the year, the interest rate stood at 42.5%, and the annual inflation rate decreased to 53.86%.

The Turkish lira's exchange rate deteriorated rapidly in 2018, reaching ₺4.5 per US dollar by mid-May.

Economists blame Recep Tayyip Erdoğan for preventing the Central Bank of the Republic of Turkey from making necessary interest rate adjustments, which accelerated the loss of value.

The Turkish lira continued to plummet in value, deflating by over 400% compared to the US dollar and the euro since 2008, largely due to Erdoğan's expansionist foreign policy.

The Turkish lira partially recovered in early 2021 with the government's increase in interest rates, but the currency began to crash due to inflation and depreciation starting on 21 March 2021.

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The Turkish lira reached a then-all-time-low of ₺8.8 to the dollar on 4 June 2021, and a new low of ₺8.9 to the dollar in September 2021.

In late 2021, the Turkish lira began collapsing rapidly, with the exchange rate falling 9% against the US dollar, reaching an all-time low of ₺12.5 to the dollar.

The Turkish lira continued to collapse in December, with the inflation rate reaching unseen levels, collapsing to ₺14.5 to the US Dollar, losing nearly all of its original value.

Erdoğan lowered interest rates down to 14% from 15%, causing the lira to lose half of its value since the start of 2021.

The Turkish Lira continued to decline throughout 2022, with the central bank governor Şahap Kavcıoğlu lowering interest rates by 150 basis points, from 12% to 10.5%, down from the 2021 low of 15%.

The official inflation rate of the Lira through 2022 reached 83%, but independent reviews put the inflation rate even higher.

In 2023, Erdoğan began to follow orthodox banking methods, and the central bank began to rapidly increase interest rates, which resulted in the lira gaining value since May.

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In the world of currency exchange, daily updates are crucial for making informed decisions.

The exchange rate between 1 EUR and TRY has seen a significant change over the past 30 days, with a high of 36.7660 and a low of 36.2809.

Looking at the data, we can see that the average exchange rate over the last 30 days is 36.5413.

The change in exchange rate over the last 30 days is -0.69%.

Here's a summary of the exchange rate changes over the last 30 and 90 days:

It's usually best to have both cash and a card when travelling in Turkey, as you'll need cash for small shops and markets, taxis and buses.

You'll often find that hotels and restaurants prefer to be paid with a card.

Due to the volatility of the Turkish lira, euros are often accepted in Turkey and can even be requested as the main currency.

Taking a combination of Lira and euros in cash and currency on the Travelex Money Card is a good idea.

The Travelex Money Card is an easy way to convert pounds to lira and euros, and you can easily top up your card with more currency on the go.

Any unspent money can then be converted into different currencies for your next trip or back into pounds.

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