Economy in Turkey: “ATMs Refilled Three Times a Day, 5,000-Lira Banknotes Should Be Introduced”
Over the past year, the frequency of ATM cash refills has increased from twice daily to three times. Due to this, there is barely any room for denominations other than 200 and 100 lira notes in ATMs.
Rising inflation and declining purchasing power have significantly increased the demand for cash. According to the Turkish Central Bank’s data, the distribution of banknotes has changed dramatically over the past 15 years. While 16% of banknotes in circulation were 200 lira notes in January 2010, they now account for 80.4%.
Reporting for *Ekonomim*, journalist Şebnem Turhan noted that over the past year, 75% of the cash placed in ATMs was made up of 200-lira notes, with the remaining 25% in 100-lira notes.
WHY DOES THE GOVERNMENT AVOID ISSUING HIGHER DENOMINATIONS?
Former Ziraat Bank Deputy General Manager Prof. Dr. Şenol Babuşcu commented to ANKA that the government avoided issuing higher denominations to avoid acknowledging the existence of high inflation.
Babuşcu said, “Higher denominations should have been introduced three years ago.” He also emphasized that the government had been unwilling to address this issue, fearing it would signal acknowledgment of severe inflation. He went on to say “The introduction of high-value banknotes doesn’t cause inflation; instead, they are a response to inflation.” He added that 500-lira and 1,000-lira notes should have been introduced three years ago. Babuşçu also noted that it was time for 5,000-lira banknotes.”
This situation highlights how inflationary pressures and the government’s reluctance to act are straining both the cash supply system and daily transactions.
