Ankara  - Turkey on Thursday introduced a new currency, dropping the word "new" from the Turkish lira and issuing new banknotes and coins.

New smaller banknotes became legal currency as of midnight and the Central Bank expects most of the older notes to be out of circulation in six months.

The "new Turkish lira" (YTL) was introduced in 2005 when the Central Bank slashed six zeroes off the old currency which had been battered by persistent high inflation. On the day before the introduction of the YTL, 1 dollar bought 1.34 million Turkish lira. One dollar is today worth 1.54 lira.

Hard fought efforts to bring inflation down allowed the government to lop six zeroes off the old currency and make life easier for Turks and tourists alike.

Taking the word "new" off the currency will see the currency revert to it's historic name, the Turkish lira (TL). There will be no change to the face value of the banknotes.

The YTL will remain convertible until the end of 2009. (dpa)