200 TL Notes Dominate Turkish Cash Circulation Amid Soaring Inflation

New data from the Central Bank of the Republic of Türkiye (TCMB) underscores the impact of sustained inflation on the purchasing power of the Turkish Lira, with 200 TL banknotes now comprising 85.1% of all cash in circulation as of May 2025.

According to TCMB figures on denomination distribution from 2009 to 2025, the share of smaller banknotes—such as 100 TL, 50 TL, and 20 TL—has plummeted below 15%. This stark shift reflects the economic toll of ongoing currency devaluation and price surges.

Smaller Banknotes Disappear from Daily Use

The 200 TL note, introduced in 2009, initially made up just 16% of total circulation. However, the rapid decline in the value of the Lira, especially post-September 2021, has made high-denomination notes the norm.

As of May 2025:

• 100 TL notes constitute 11.5%

• 50 TL notes 1.8%

• 20 TL notes a mere 0.7%

Smaller denominations have virtually disappeared from ATMs and retail transactions, where their value is now considered negligible.

Economists Warn of “Currency Erosion”

Experts describe the shift in banknote dominance as a sign of “monetary erosion“—a process where inflation renders lower denominations practically obsolete.

“Today, a 200 TL note can’t even cover a basic grocery trip,” noted analysts, emphasizing how consumers are forced to carry more cash just to meet everyday needs.

Economist Uğur Gürses, who shared the figures online under the caption “How a currency dissolves,” criticized the central bank’s inaction. In his blog, he warned:

“Unless the Central Bank issues a larger note, like a 500 TL banknote, the largest bill will effectively crowd out the rest.”

According to Gürses, this trend reflects not only the Turkish Lira’s deepening loss of value but also structural shortcomings in the central bank’s monetary policy response.