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ISTANBUL, Jan 2 (Reuters): Turks accustomed to prices in millions, even billions of lira awoke yesterday to bank notes stripped of six zeros; a break with years of economic crisis and a move to what many hope will be a brighter European future.
Under the slim-lined currency, a cup of coffee will sell for about 4.00 New Turkish Lira (YTL), instead of 4,000,000 old-style.
Turkey's currency has long been something of a symbol of national disgrace, bamboozling foreign visitors and reminding Turks of three decades of political turmoil and hyper inflation.
"We are very happy to have rid Turkey of such a shame, of multi-zeroed bank notes", said Prime Minister Tayyip Erdogan after drawing money from a cash machine in the north-western town of Safranbolu, where he was on new year holiday with his family.
"We are happy to reinstate the dignity of the Turkish lira", he was quoted.
Launch of the new currency is seen as part of the country's drive to show the European Union (EU) it now has a strong market economy ahead of entry talks due to begin in October. Inflation has fallen from 150 per cent in the mid-1990s to single digits.
Turks had boasted, with some chagrin, the world's highest denomination bank note of 20 million lira. That, along with other old notes, will now be phased out completely by 2006, with both sets of notes used in parallel for a transition period.
Coins, similar in style now to euro coins, will also return to widespread use. One dollar is the equivalent of 1.345 New Turkish Lira.
As before, both coins and bank notes will bear the image of Mustafa Kemal Ataturk, founder of the modern Turkish secular republic.
Turks welcomed the new lira when shopping in the early hours of Saturday, some clearly amazed by the small denominations.
"I believe it will be good for business. The fewer the zeroes, the easier the calculations", said Arda Sait Okten, a 20-year-old technician from the capital Ankara.
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