FACULTY OF LAW

PUBLIC LAW CHAIR

BANKING AND CURRENCY LAW

TURKISH LIRA HISTORY AND CURRIOSITIES

The history of the Turkish lira is just as colorful as its national history. The term lira was first
used in 1844 by the Ottoman Empire. At first, lira was used to refer to a gold coin. Other
monetary units used by the Ottoman Empire were akce (currently known as kurus) and para.
Lira, the former monetary unit of Italy and Malta and the currency of modern Turkey.
The lira was introduced in Europe by Charlemagne (c. 742814), who based it on the pound
(Latin: libra) of silver. No lira coins were struck during the Middle Ages, and the lira remained
strictly a money of account. By the 16th century several of the Italian states actually struck lira
coins, but they varied considerably in weight. One of the states that used the lira was the
kingdom of Sardinia, and this monetary unit was adopted in all of Italy when it became unified
under Sardinian leadership. In 1862 the Italian lira (plural: lire), which up to then had been
divided into 20 solidi, was redefined, and the decimal system was introduced, with 1 lira equal to
100 centesimi. In 2002 the lira ceased to be legal tender in Italy after the euro, the European
Unions monetary unit, became the countrys sole currency.
The lira was also the monetary unit of Malta, where it was divided into 100 cents. The Central
Bank of Malta had exclusive authority for issuing the Maltese poundlocally called lira (plural:
liri)which was adopted as the countrys official currency in 1972. The Maltese pound was
officially renamed the Maltese lira in 1983. In 2008 Malta adopted the euro as its official
currency.
The Ottoman Empire adopted the Ottoman lira in 1881, when it replaced the piastre (piece of
eight). The Turkish lira replaced the Ottoman lira in 1927. The Central Bank of the Republic of
Turkey has the exclusive authority to issue banknotes and coins. The Turkish lira is divisible into
100 kurush. In 2005 a new Turkish lira was introduced at a rate equivalent to 1,000,000 old
Turkish liras. Banknotes are issued in denominations ranging from 1 to 100 new liras. The
obverse of each banknote contains an image of Kemal Atatrk, the founder of modern
The current currency sign of Turkish lira was created by the Central Bank of the Republic of
Turkey in 2012. The new sign was selected after a country-wide contest. The new symbol,
created by Tlay Lale, is composed of the letter 'L' shaped like a half anchor, and embedded
double-striped letter 'T' angled at 20 degrees.
Prime Minister Recep Tayyip Erdoan announced the new symbol on 1 March 2012. At its
unveiling,Erdoan explained the design as "the anchor shape hopes to convey that the currency
is a 'safe harbor' while the upward-facing lines represent its rising prestige".
In May 2012, the Unicode Technical Committee accepted the encoding of a new
character U+20BA TURKISH LIRA SIGN for the currency sign, which was included in Unicode
6.2 released in September 2012.
Turkey and its first president (192338). Coins range in value from 1 kurush to 1 new lira.
The yearly average exchange rate of the lira was as follows:
2005 1 U.S. dollar = 1.29 new Turkish lira (The use of New Turkish lira, which drops
6 zeros from the currency Turkish lira, was implemented in 2005)
2010 1 U.S. dollar = 1.55 Turkish lira
2012 1 U.S. dollar = 1.80 Turkish lira (average)
2014 1 U.S. dollar = 2.09 Turkish lira (average)

Places illustrated on Turkish banknotes:

A: Mount Ararat ( a snow-capped and dormant volcano in Turkey)
C: Cappadocia ( a historical region in central Anatolia
E: Ephesus ( an ancient Greek city, famed for the Temple Artemis)
I: Istanbul
M: Manavgat Waterfall