The Central Bank of Turkey is printing 200 TL like crazy. from Turgut Can's blog

​The Central Bank of Turkey is printing 200 TL like crazy.

Since its introduction into circulation, the purchasing power of the 200 TL banknote has rapidly declined due to the implemented economic policies, while its quantity in circulation has reached a record high.

As global interest rates rise, signaling the end of the era of abundant money worldwide, the amount of money in circulation continues to increase in Turkey, which has adopted heterodox policies contrary to its peers.

In the current global environment, leading central banks are aggressively raising interest rates in response to rising inflation, effectively tightening the money supply.

However, under the rule of the AKP government, Turkey is pursuing the opposite approach. This has led to a daily erosion of the purchasing power of the Turkish lira while also increasing the quantity of the largest banknote in circulation, the 200 TL.

In January 2009, there were 8.8 million 200 TL banknotes in circulation, totaling 1.77 billion TL.

RECORD LEVEL
According to data released by the Central Bank, as of the end of December 2022, the number of "200 TL" banknotes in circulation increased by 104% compared to the end of 2021, reaching 966,978,000 pieces.

The data shows that there are a total of 193,335,560,000 TL worth of 200 TL banknotes in the market. Citizens withdrawing cash from ATMs find themselves holding crisp, freshly printed 200 TL notes in quick succession.

As inflation reached a 20-year high, the purchasing power of the Turkish lira eroded, causing the largest denomination in circulation, the 200 TL note, to lose its value rapidly.