2.6 Banknotes in Circulation

The value of banknotes in circulation, which was TRY 342 billion at the start of 2023, reached its historical peak at TRY 516 billion in June on the back of a gradual upward trend, and completed the year at TRY 449 billion (Chart 2.6.1)

By the end of 2023, the value and number of banknotes in circulation had increased by 31% and 17%, respectively. Over the last decade, the year-end value of banknotes in circulation in Türkiye has increased by an average 20% and the number of banknotes in circulation by an average 12% on an annual basis (Chart 2.6.2).

As of 31 December 2023, the number of banknotes in circulation was 4.2 billion. At the end of 2023, the two denominations with the highest number of banknotes in circulation were TRY 200 and TRY 100 banknotes, respectively, which together made up 62.9% of all the notes in circulation. As measured by value, the two denominations commanding the biggest shares of the total were also TRY 200 (69.6%) and TRY 100 (23.6%) banknotes.

In 2023, via its 21 branches, 16 banknote depots, one cash center, and 40 Decentralized Cash Management (MONY) depots responsible for banknote custody and processing on behalf of the CBRT, a total of TRY 4.3 trillion worth of transactions were conducted, TRY 2.1 trillion of which were collections and TRY 2.2 trillion were payments (Chart 2.6.3).

In this period, on a nationwide basis, branches with the largest shares in the total cash transaction volume were the Istanbul Branch (40.5%), the Ankara Branch (10.7%), and the Izmir Branch (8.1%).

The CBRT has banknote depots in 16 of Türkiye’s provinces where it does not have branches, serving to improve the physical quality of banknotes in circulation and meet the cash need of the market through different denominations of banknotes in a timely manner. Through these depots, TRY 205 billion worth of collections and TRY 267 billion worth of payments were made in 2023. In other words, 11% of the CBRT’s total cash transaction volume was performed via these depots.

Additionally, five new MONY depots, one in Izmir and four in Istanbul, started operating in 2023. Thus, the total number of MONY depots reached 40 by the end of 2023. The share of transactions by MONY depots within the total transactions in the related provinces was 35.3% in Istanbul, 32.8% in Ankara, 25.6% in Izmir, 13.6% in Bursa, and 7.7% in Izmit. Efforts are in progress to open MONY depots in other provinces with high cash transaction volume.

Lastly, Consignment Coin Depots (CCDs), which were established in 11 provinces as per the protocol signed between the Turkish Republic Postal and Telegraph Corporation (PTT) and the CBRT to enhance the efficiency of coin cash management, continued their operations. In 2023, 75.4% of the country-wide coin transaction volume of TRY 699 million was made by these CCDs.