1 Jan 2005
The new Turkish lira removes six zeros.
Cases / Contrast case / Turkey
Turkey
1990–2005
This is not a hyperinflation. Turkey had decades of chronic high inflation, tens of percent a year with crises (1994, 2001), but it never reached 50 % in one month, so it is absent from the H&K table.
Contrast case: never 50% in a month, so not a hyperinflation< 50%in every monthchronic inflation, not a hyperinflation
1banknotes in the collectionLira
Currency reform: 1 new lira = 1,000,000 old (2005) · Cause: Chronic deficits — high inflation for decades, never a hyperinflation · Resolution: Independent central bank, six zeros removed (2005)
In short
The lira went from 80 per dollar in 1980 to 1,350,000 in 2005. It was the world's least valued currency in 1995–96 and again in 1999–2004, until six zeros were removed on 1 January 2005. It is a contrast case: what inflation does without ever turning into a hyperinflation.
The curve
Lira per 1 USD, logarithmic scale: each line up is many times the one below.
Chronic high inflation, never 50% in a month: not a hyperinflation. The lira was the world's least valued currency in 1995–96 and 1999–2004 (Wikipedia). On 1 January 2005, 1,000,000 old lira became 1 new lira. Approximate series, kept for its shape; individual points are not sourced one by one. Source: Central Bank of Turkey, World Bank, FRED - Federal Reserve Economic Data.
What happened
The events in order, with the banknotes at the date on them.
Context: why it happened
- Chronic budget deficits financed by the central bank and by short-term debt at very high rates.
Consequences & lessons
- High inflation can last for decades without becoming hyperinflation, provided the state keeps borrowing on markets rather than printing outright. It is still a steady tax on savers.
The banknotes
The data
| figure | value | source |
|---|---|---|
| Hyperinflation | none; not in H&K | H&K (absence) |
| Lira per USD (yearly average) | 80 (1980) · 500 (1985) · 2,500 (1990) · 43,000 (1995) · 620,000 (2000) · 1,250,000 (2001) · 1,350,000 (2005) | Wikipedia (Turkish lira) |
| World's least valued currency | 1995–96, 1999–2004 | Wikipedia (Turkish lira) |
| Redenomination | 1 Jan 2005, 1 YTL = 1,000,000 TL | Wikipedia (Turkish lira) |
The series, point by point
| Month | per $ |
|---|---|
| 1990-01 | 2,310 |
| 1990-12 | 2,930 |
| 1991-12 | 5,080 |
| 1992-12 | 8,560 |
| 1993-12 | 14,500 |
| 1994-04 | 38,000 |
| 1994-12 | 38,500 |
| 1995-12 | 59,500 |
| 1996-12 | 107,500 |
| 1997-12 | 205,000 |
| 1998-12 | 314,500 |
| 1999-12 | 545,500 |
| 2000-12 | 677,000 |
| 2001-02 | 960,000 |
| 2001-10 | 1.65 million |
| 2002-12 | 1.65 million |
| 2003-12 | 1.4 million |
| 2004-12 | 1.34 million |
Cite this case
“Turkey 1990–2005”, Hyperinflation Archive, hyperinflation.rogzy.org/turkey-1990-2005/ (2026). Figures: Hanke & Krus (2012) and the sources listed below.
“Turkey 1990–2005”, Hyperinflation Archive, hyperinflation.rogzy.org/turkey-1990-2005/ (2026). Figures: Hanke & Krus (2012) and the sources listed below.
Sources
- Wikipedia, "Turkish lira" (read 2026-10-05): https://en.wikipedia.org/wiki/Turkish_lira
- Hanke & Krus (2012) — its absence from the table.
H&K = Hanke, S. H. & Krus, N. (2012), World Hyperinflations, Cato Institute Working Paper no. 8.