Controversy in Turkey after revealing a government tendency to issue a new banknote

A former official of the Turkish bank Ziraat, known in Turkish such as Ziraat Bankası, has sparked widespread controversy in Turkey after disclosing in a tweet on his official Twitter account that the Turkish Central Bank wants to introduce a new 500-lire banknote and a 5-lire metal class.

Although Şenul Babushcu, the former director of Ziraat Bank, which manages the “Turkish Sovereign Wealth Fund” with Halkbank, publicly revealed yesterday that the government wants to issue a new banknote and coin, the government has not yet commented on his statements. although opposition parties to Turkish President Recep Tayyip Erdogan have asked for clarification on his controversial statements.

“The government has started preparing to print a new 500 lira banknote and a 5 lira coin,” Babushjo said literally. in a tweet on Twitter, without providing further information.

The Cumhuriyet newspaper, backed by the main opposition party, the Republican People’s Party, said the government had already obtained advanced German-made devices to issue the new denominations of the Turkish lira.

Informed Turkish sources revealed to that “the 200 lira banknote of the Turkish currency constitutes 42% of the money circulating in the country, and in 2009 it was worth about $ 130, but today it is only $ 13.6 after the significant decline of the lira.” Turkish versus foreign currencies.

The sources underline that “the various denominations of the Turkish lira have lost purchasing power, and therefore there is now a great demand for the 200 lira denomination, and this means that the possibility of printing a paper denomination of higher value than that seems predictable. “ failed to get comment from the Turkish government in about the issuance of the two new denominations of the lira, but 3 financial experts have confirmed that the loss of value of the lira against foreign currencies in the last two years will force the Turkish Central Bank to introduce new denominations of the local currency.

The announcement of the former director of Ziraat Bank was preceded by statements by former Turkish finance minister Ali Babacan, who has led the “Democracy and Construction” party since his resignation from the ruling “Justice and Development” party, in which stated that “the government will print more money to pay interest on deposits to their owners who keep their money in banks in Turkish lira.

The former minister added that “printing more banknotes will cause higher inflation rates”, in particular that the annual inflation rate in Turkey up to the beginning of this month stood at 61.14 per cent, the highest in the last 20 years, which led to an increase in energy and basic consumption. prices of materials, especially after the outbreak of the Russian-Ukrainian war more than two months ago.

Turkey has only 5,10, 20, 50, 100 and 200 lira banknotes, while the highest currency is in 1 lira denominations.

The Turkish Statistical Institute, a government agency, revealed earlier this month that consumer prices rose by 5.4 percent in March compared to February, taking the annual inflation rate from 45.44 percent to the previous month. February to over 61 percent, in April.

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