THE DAYS when even the poorest of Turks could claim to be multi-millionaires drew to a close over the New Year as Turkey ushered in a new currency that effectively knocked six zeros of its inflation-ridden lira.
The Yeni Turk lirasi, or New Turkish Lira in English, was unleashed at midnight on December 31, bringing an end to the bewildering mathematical calculations needed for even the most minor of shopping trips.
Turkey’s currency reform is part of a wider programme backed by the International Monetary Fund (IMF) aimed at bringing stability to Turkey’s growing but volatile economy following the notorious 2001 crash.
The reform has implications for Cypriots too, as the ‘official’ currency of the north is the Turkish lira, or as it is now known, the New Turkish lira.
The governor of the north’s ‘central bank’ Erdogan Kucuk believes it will take just one month for the new notes and coins to be fully introduced in the north – much faster than is forecast for Turkey.
“The changeover will be faster here because we’re dealing with a much smaller population. I think that within a month the old notes will be out of circulation,” he said on Sunday.
He added that ATM machines were fully stocked exclusively with the new notes.
But despite the expected high-speed changeover, shopkeepers are being asked to display prices in both the old and new way until the end of the year.
Yesterday shopkeepers in the north told the Cyprus Mail the new notes and coins – which closely resemble the old ones, except that six zeros have been deducted – were already being widely used.
“We’ve seen many since they came into circulation on Saturday. Our tills are full of them,” Nicosia shopkeeper Fetin Korman said. “We’ve had very few problems. The colours of the notes are the same so they are not difficult to get used to.”
With six zeros removed, one million Turkish lira is now represented as just one lira, worth just over 31 Cyprus cents. And making its first reappearance in two decades is the kurus, the Turkish equivalent of a cent, of which there are 100 to the lira.
Yesterday long queues formed at banks as many sought to exchange their old notes and coins for new. There is no hurry, however, as the old notes will be exchangeable for the next decade, although coins will need to be exchanged before the end of the year.
Most shoppers appeared pleased with the new lira, saying it made life easier after years of struggling with the awkward millions.
“I haven’t seen any yet but I’m sure the new notes will be much easier to handle,” said Bumin Bezmen in Nicosia.
A Greek Cypriot visiting the north, Micheal Andreou, agreed.
“I get very confused with all those noughts,” he said. “I don’t usually pay for things here in Turkish Lira because they accept Cyprus pounds everywhere, but quite often I get given change in Turkish lira and I have no idea at all whether I’m getting the right amount,” he added.
However, accountant Goksel Saydam did not think the transition would be as simple as many thought.
“Yes, it’s true we will no longer need 16-digit calculators, but there will be problems when we start converting accounts,” he said explaining that there could be losses and gains when figure are rounded up or down to fit into the new system.
He added that a spate of price rises could also occur as traders “round up” prices and that people would be encouraged to spend more “when they see lower numbers on products they previously paid millions for.”
