"Our banknotes and coins will be renamed as TL and Kurus and they will enter into circulation on January 1st, 2009 with new designs, sizes and enhanced security features," Yilmaz told a press conference.

"This is going to be the second part of the monetary reform," Yilmaz said.

The inflation problem experienced in Turkey over the past few decades until early 2000s caused severe depreciation in value of Turkish lira. The currency came to trade at approximately 1.65 million lira per U.S. dollar in late 2001.

In 2003, Turkish parliament passed a law that allowed removal of six zeroes from the currency, and circulation of the new lira. It was introduced on January 1st, 2005 replacing the previous lira.

Governor Yilmaz said YTL and TL would be in circulation together for 1 year until 2010.

He also said that the bank would issue 200 TL banknotes and that 1 TL would be in circulation only as coins. Today, the most valuable banknote is 100 YTL in Turkey.

Yilmaz added that Central bank would make public new sizes, designs and security features of the new banknotes and coins on October 3rd.

AA