In late December 2003 , the Grand National Assembly of Turkey passed a law that allowed for the removal of six zeroes from the currency , and the creation of the new lira . It was introduced on 1 January 2005 , replacing the previous lira ( which remained valid in circulation until the end of 2005 ) at a rate of 1 new lira = 1,000,000 old lira .
The new Turkish lira was the currency of Turkey and the de facto independent state of the Turkish Republic of Northern Cyprus between 1 January 2005 and 1 January 2009 which was a transition period for the removal of six zeroes from the currency .