Combining 20 TL and 5 TL in Syria

No matter how strange it may seem GreeceFor a while, he tried to save his economy by dividing the money in two.

In our opinion, splitting a banknote in half is either too much of the money. losing value or it makes you think that it is of no use. However, there are some situations where this works. For those wondering why, how and its effect, we can list it below.

First, let’s look at Syria’s new banknote.

As you can see in the image, a part of 5 TL is added to the part corresponding to a quarter of 20 TL and we get a new 25 TL comes out. How many 25 TL do you think can be made from one 5 TL?

We thought this genius idea could not have first come from Syria, and we came across Greece.

In the 1800s, an organization of British bankers lent 800 thousand pounds to Greece and what Greece went through when paying it back made them feel with the first bankruptcy compared. In Greece, which went bankrupt once again in 1893, demand for smaller banknotes such as 10 drachmas began to increase.

In 1897, 5 drachma banknotes were printed and The statement that it is forbidden to divide money was added, but people continued to cut the money without paying attention to it. However, this slaughter must have worked because the government changed tactics in the 1920s.

The banknotes delivered after the compulsory loan taken to finance the increasing budget deficits in 1922, to be replaced with 6.5 percent bonds. decided. Afterwards, the banknotes were split in two and the part with the Greek crown replaced the bonds. The other half is exchanged for a new central bank note worth half its real value. was exchanged. But this did not work for a very long time, because the compulsory credit exceeded its limits and the economy continued to falter for a while.

In the 1940s, following the issuance of other banknotes such as 50 and 20 lepta, these currencies began to suffer from inflation However, the system was changed with new banknotes that the government continued to issue over time.

But why should what you call a banknote be cut in half?

Some countries, such as Finland, have also turned to copper instead of printing money from silver to improve their economy. reduced cost. Such struggles of many countries actually reveal an interesting fiscal policy.

In order to increase the money supply rapidly, the insufficient quality of printing money and dividing the existing banknotes into two will cause more people to lose money. access to cash can provide. In addition, using existing money twice instead of printing new money saves on printing costs.

Of course, having more cash in people’s hands can provide more confidence in the government. But no matter what is done Unless inflation is brought under control These tactics not only undermine confidence in monetary policy, but also make long-term sustainability impossible.

As a result, although dividing the banknote into two was preferred as a different method in the past, Syrians still use Turkish lira. out of circulation Using it in this way does not seem to have a long-lasting effect.

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