200 TL Now Worth Just $5: Former CBRT Chief Warns of Historic Devaluation

Prof. Dr. Hakan Kara, former Chief Economist of the Central Bank of the Republic of Türkiye (CBRT), has sounded the alarm over the sharply diminished value of the 200 TL banknote, noting that it now equates to just $5—the lowest level in Türkiye’s history.

In a post shared on his social media account, Kara emphasized the symbolic and structural significance of this decline, stating:

“Our largest banknote, 200 TL = $5. This is the lowest level in history. It’s a choice.”

A Historic Low Not Seen Since the 2001 Crisis

According to Kara, the previous low point for the lira was during the 2001 economic crisis, when the 200 TL equivalent stood at around $6.60. He further pointed out that his comparison does not factor in the U.S. dollar’s own inflation, implying that the real depreciation of the Turkish lira is even more dramatic.

This commentary adds to growing concerns about how inflation and currency devaluation are distorting purchasing power and day-to-day economic realities in Türkiye.

“It’s a Policy Choice to Reduce Cash Use”

Kara went beyond currency metrics, offering a possible interpretation of state monetary policy strategy:

“This is a deliberate choice. Reducing cash use may be aimed at fighting the informal economy.”

He suggested that the diminished purchasing power of physical money may not solely reflect economic deterioration, but also a governmental preference toward digital transactions as a tool for reducing off-the-books activity.

200 TL Banknotes Dominate Circulation — Yet Struggle to Buy Essentials

As of June 2025, CBRT data shows that 200 TL banknotes now make up 85% of all currency in circulation. However, their real-world utility has eroded to the point where they can barely cover basic daily expenses.

In 2015, a single 200 TL note could purchase a basket of necessities. Today, that same basket costs over ₺2,400, requiring 12 individual 200 TL notes—highlighting a twelvefold rise in prices and the crippling effect of inflation.

Kara’s Graph Shows Long-Term Value Erosion

Kara also shared a graph charting the dollar-equivalent value of 200 TL over time. The visual underscores not just the nominal loss in value, but a real, inflation-adjusted collapse. The warning is clear: monetary policy decisions have daily consequences for millions.

His message is both technical and human: economic metrics reflect lived realities, and cash devaluation is not just a statistic—it’s policy in action, shaping what people can afford and how they live.