2.6. Currency in Circulation

By the end of 2012, the volume of currency in circulation increased by 9.8 percent annually and reached TL 60.5 billion while the real volume of currency in circulation increased by 3.5 percent (Graph 27).

grafik

The ratio of currency in circulation to GDP was realized as 2.2 percent between the years 1998-2004. After the currency reform in 2005, this ratio averaged to 3.8 percent between the years 2005-2012 (Graph 28). 

grafik

Excluding TL banknotes, which are still in the redemption period, 1,034.7 million banknotes were in circulation as of 31 December 2012. By the end of 2012, TL 100 and TL 50 had the largest shares in number of banknotes and TL 100 and TL 200 had the largest shares in value. The largest share of two denominations (TL 100 and TL 50) in the total reached to 45.2 percent in the number of banknotes (Table 4).

In 2012, a total transaction of TL 486 billion (TL 240.3 billion deposits vs. TL 245.7 billion payments) was realized through 21 branches, 16 banknote depots and 2 cash centers.

Moreover, in 2012, TL 26.6 billion deposits and TL 25.6 billion payment transactions were made in banknote depots, which have been established in 16 cities where the CBRT does not have branches, to improve banknote quality and meet various cash demands of the market on time. In other words, 10.7 percent of the Bank's total transaction volume in 2012 was made through the banknote depots.

The European Side Cash Center that was established as a sub-division of the Istanbul Branch started its operations on 17 December 2012 and officially opened on 26 December 2012. The new cash center is expected to significantly reduce the workload of the Istanbul Branch and to ease cash operations of the financial sector. While the European Side Cash Center received an almost 27.2 percent share in total volume of cash operations of Istanbul between 17‑31 December 2012 period, The Anatolian Side Cash Center's share was almost 33.5 percent. In this period, the Anatolian and the European Side Cash Centers had shares of 10.4 and 8.5 percent in total transaction volume and performed as the third and the fourth largest branch among all branches, respectively.

In addition, within the framework of the authorization given to the Central Bank of the Republic of Turkey by Law No.1211, E-9 Emission Group II. Series TL 100, TL 20 and TL 10 banknotes were put into circulation as of 24 December 2012. These banknotes, apart from the signatures, are identical to the I. Series banknotes with regard to their dimensions, obverse and reverse compositions, general features and appearances.  The I. and II. Series banknotes are concurrently in circulation. II. Series TL 200, TL 50 and TL 5 banknotes will be put into circulation in 2013.

Table 4. Banknotes in Circulation as of 31 December 2012

Denomination

Amount

Share (Percent)

Pieces

Share (Percent)

TL 200

14,279,015,000.00

23.59

71,395,075.0

6.27

TL 100

29,440,997,400.00

48.64

294,409,974.0

25.84

TL 50

11,028,728,250.00

18.22

220,574,565.0

19.36

TL 20

3,231,988,240.00

5.34

161,599,412.0

14.18

TL 10

1,467,051,865.00

2.42

146,705,186.5

12.88

TL 5

700,141,982.50

1.16

140,028,396.5

12.29

Sub Total

60,147,922,737.50

99.38

1,034,712,609.0

90.81

Others*

377,559,410.75

0.62

104,676,299.0

9.19

General Total

60,525,482,148.25

100.00

1,139,388,908.0

100.00

Source: CBRT.

(*) Banknotes that are still in the 10-year redemption period.