Explosion of 200 TL in the market



While the purchasing power of the 200 TL banknotes in circulation fell sharply on 1 January 2009, the number of 200 TL banknotes in circulation nearly exploded.

According to Central Bank (CBRT) data, in January 2009, 8.8 million 200 TL banknotes worth 1.77 billion TL were in circulation. As of the end of July 2022, 760 million banknotes of 200 TL worth 152 billion TL are on the market.

A year earlier, the number of 200 TL banknotes in circulation stood at 394 million. The rate of increase in the number of 200 TL banknotes in just one year was 93 percent.

Increase in Other Banknotes Limited

The rate of increase in other banknotes was behind the increase in the 200 TL banknote. While the number of 100 TL banknotes increased by 5 per cent to 1.212 million units last year, the number of 50 TL banknotes increased by 1.5 per cent to 464 million units in the same period.

While the number of 20 TL banknotes decreased by 8 percent in the previous year, the number of 10 TL banknotes increased by 25 percent to 382 million, and the number of 5 TL banknotes increased by 8 percent to 356 million.

Ranked first in AMOUNT

The total value of 200 TL banknotes in circulation reached 152 billion TL, exceeding the total value of 100 TL banknotes for the first time this year.

The total value of 100 TL in the market is at the level of 121 billion TL.

The total value of all banknotes in circulation increased over a year to 307 billion TL.

200 TL basket now 1248 TL

The dramatic depreciation of the Turkish lira continues. As inflation, the faster the prices of goods and services rise, more and more money is needed to fill shopping carts.

The 13.5-year story of the 200 TL banknotes that came into circulation on 1 January 2009 reflects this situation astonishingly.

According to TUIK data, the Consumer Price Index increased by 524 per cent in the period from January 1, 2009 to July 31, 2022.

Thus, a shopping cart that was filled up to 200 TL on January 1, 2009, can now be filled up to 1248 TL on July 31, 2022.

In the process the purchasing power of 200 TL has decreased by 84 percent compared to headline inflation.

In addition, the price increase in the basket of personal goods and services of many citizens significantly exceeds this figure. That is, for many citizens the decline in purchasing power of 200 TL was more severe.

The purchasing power of the TL 200 fell 86.2 percent

The ‘Food and Non-alcoholic Beverage Price Index’, which accounts for the inflation of middle- and low-income citizens, increased by 726 percent between January 1, 2009 and July 31, 2022.

In other words, the food basket, which was 200 TL on January 1, 2009, can today be filled with 1452 TL.

In the period from 1 January 2009 to 31 July 2022, the purchasing power of 200 TL for the food basket decreased by 86.2 percent.

4.7 g gold was bought for 200 TL, $130

When the 200 TL was introduced into circulation, the dollar/TL was 1.53, the gram of gold was 43 TL. Today the Dollar/TL was seen at 17.97 TL and the Gram Gold 1033 TL.

On 1 January 2009 $130 or 4.7 grams of gold could be bought with 200 TL, today only $11 can be bought, five 200 TL banknotes are not enough for a gram of gold.

On the other hand, since Turkstat stopped publishing the average price list of item baskets from May, with suspicions that it has underestimated inflation, it is possible to compare the purchasing power of 200 TL between January 2009 and July 2022. Not there.

Explosion in money supply

According to CBRT data, the M1 money supply i.e. the sum of circulation and term deposits in banks, minus cash pending in bank vaults, registered a historic increase this year.

The M1 money supply grew by 94 percent in the previous year from 2 trillion 283 billion TL to 4 trillion 424 billion TL.

Despite high inflation, cutting interest rates as well as the opening of the credit tap led to a sharp increase in exchange rates and inflation as well as the money supply.

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