Turkish banks reduce the issuance of 100-lira banknotes through ATMs

Turkish banks have begun massively switching ATMs to dispensing cash predominantly in 200 Turkish lira banknotes. In a number of machines, 100-lira notes have already disappeared, replaced by higher-denomination banknotes. There has been no official order from the authorities on the matter — this is a decision made by the banks themselves, aimed at reducing operating costs and improving the efficiency of ATM operations.

The reason for the changes is persistently high inflation and the sharp decline in the purchasing power of the Turkish lira. In recent years, the amounts withdrawn by residents from ATMs have increased significantly, forcing the machines to be replenished with cash much more frequently. Using 200-lira banknotes makes it possible to place twice as much money in an ATM without modifying its design and to reduce the number of cash collections.

According to Şenol Babuşcu, former deputy general manager of Ziraat Bank, many banks have already stopped loading 100-lira banknotes into ATMs and are using only 200-lira notes. The expert noted that this practice is becoming increasingly widespread across the country.

It is important to understand that 100-lira banknotes are not being withdrawn from circulation. They remain legal tender and continue to be issued by the Central Bank of the Republic of Türkiye alongside banknotes with denominations of 5, 10, 20, 50 and 200 lira. The changes concern exclusively the ATM-loading policies of individual commercial banks.

Economists note that the current situation is another consequence of inflation. In 2009, when the 200-lira banknote was introduced, it was considered a large-denomination unit, whereas today its real purchasing power has declined substantially. As a result, withdrawing the same amount requires significantly more banknotes, increasing the strain on ATMs, accelerating their wear and tear, and raising banks' cash-handling costs.

Against this backdrop, discussions have once again intensified in Türkiye about the need to issue 500- and 1,000-lira banknotes. However, the Central Bank of the Republic of Türkiye has repeatedly stated that it is not currently considering introducing new, higher denominations, despite inflation and the decline in the purchasing power of the national currency.

Thus, this is neither a monetary reform nor the abolition of 100-lira banknotes, but rather an adaptation of banking infrastructure to the current economic situation. For most customers, the changes will simply mean that when withdrawing cash, they will more often receive 200-lira notes, while smaller-denomination banknotes may be found in ATMs much less frequently.