BY SEBNEM TURHAN
Inflation, which rose to 69.97% in April, also increases the need for larger value banknotes. The share of TRY 100 and TRY 200 banknotes in the amount of money in circulation jumped from 40.56% to 87.96% in 13 years.
The usage of the largest value banknotes has almost doubled after purchasing power sharply declined due to high inflation, the Central Bank data showed. The share of TRY 100 and TRY 200 banknotes in the total number of banknotes rose from 41% in January 2009, when they were put into circulation, to 88% in April 2022. The share of TRY 200 banknotes in circulation was 12% in April 2009. In the shade of annual consumer inflation, which reached 70%, its share exceeded 43% in April 2022. TRY 100, the second largest value banknote, surged from 28% to 45% in the April 2009-2022 period.
The decrease in purchasing power also paved the way for a considerable decline in the usage of the lowest value banknotes between April 2009 and April 2022. The share of TRY 5 in total circulation decreased from 0.96% to 0.61%, while the share of TRY 10 dropped from 2.94 to 1.16 and the share of TRY 20 fell from 6.48% to 1.95% in this period. The share of TRY 50, which was 26.04% of the total banknotes circulated in April 2009, fell to 8.33% in April 2022. The total share of TRY 5, TRY 10, TRY 20 and TRY 50 decreased by around 25 points from 36.42% to 12.05% in the same period.
