Fake dollar crisis leads to black market: 'Commission is being charged to citizens exchanging $50 bills'

In Istanbul, some currency exchange offices in the Grand Bazaar have stopped buying dollars due to allegations that counterfeit $50 and $100 banknotes printed abroad are being circulated. Money market expert Reşat Yılmaz and market expert Mehmet Ali Yıldırımtürk issued critical warnings to citizens.

“WE ARE NOT ACCEPTING $50 BILLS”

Yılmaz stated that they had encountered counterfeit dollars in the market before, but that this situation has increased exponentially in the last month, saying, “Counterfeit dollars were coming into the market before, but the amount was very low. For example, when a citizen brought $10,000 to the office, one $50 or one $100 bill would come out of it. However, this amount has increased significantly in the last month. There is great anxiety in the market. Currently, we, including ourselves, are not accepting $50 bills. I have accumulated $50 bills in my possession, including my own, but I cannot give them out. I also do not accept them when a citizen comes. When a citizen exchanges $10,000, they give up when there are two $50 bills inside. It seems very difficult for this money to be collected in a short time because it is a large amount,” he said, expressing the difficulties they are facing.

“COMMISSION IS BEING CHARGED TO CITIZENS EXCHANGING $50 BILLS”

Stating that a black market has formed for $50 bills, Yılmaz described the situation in the Grand Bazaar as follows:

“As for the situation with the dollar, there is no problem with the gray-toned dollar, but problems have started to arise with the dollar that leans more towards white. In the heart of money in Turkey, here in the Grand Bazaar, the chances of a counterfeit dollar passing are very low. Of course, everyone, including me, is struggling to distinguish the fake from the real. This is also a problem for banks. I think this problem will be solved within 2-3 weeks because money counting machines are being brought from abroad. Once these machines are updated, the problem will decrease. But of course, the tension is very high right now. This many $50 bills were not entering the market. Now, a large amount of $50 bills has started to enter the market. A black market has even formed. Information has started to spread that a commission is being charged to citizens who exchange $50 bills.”

“CITIZENS WILL GET HURT”

Warning citizens to avoid victimization during this process, Yılmaz said, “We are going through a very painful process in the economy, and the emergence of counterfeit dollars has affected us all. Citizens should continue to shop from places they know. Because until this process passes, citizens will get hurt. When quotas were imposed, gold started to be smuggled into the market. A black market formed in gold. If the process is not ended, it will lead to problems in the future,” he said.

“PENALTIES ARE NOT DETERRENT”

Addressing the authorities, Yılmaz said, “The penalties are not deterrent enough. The people doing this need to be exposed as soon as possible. The authorities need to clarify this as soon as possible. Citizens have also started to turn away from foreign currency and towards gold,” he said, concluding his words.

“TO AVOID TAKING RISKS…”

Market expert Mehmet Ali Yıldırımtürk explained what citizens should do as follows:

“When buying from currency exchange offices, the citizen first provides their Turkish ID number, pays the 0.2% tax, and they provide their own letterhead receipts for this transaction. Therefore, if there is any counterfeit currency there, the problem of replacement or supply can be solved from there because the place of purchase is known. Apart from this, if it is taken during any shopping transaction by saying 'we don't have a certain amount of cash, let's give foreign currency instead,' this could be a problem. Especially currency exchange offices do not make purchases from people coming to sell foreign currency for the recently printed light green-colored dollars, as there is no problem with them, but to avoid taking risks with currency that matches the paper's original color. Banks are also not making purchases right now to avoid taking risks.”

“IT ALSO HAPPENED DURING THE IRAQ WAR”

Stating that this situation occurs from time to time, Yıldırımtürk said, “We also encountered this during the Saddam era in the Iraq War. Because at that time, since it was shaped with iron dust inside the dollar paper, money counting machines accepted it as genuine. Now, there is also a problem with the counterfeit currency currently being circulated because it is currency printed on the same paper and especially because it passes through money counting machines,” he stated.