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İstanbul currency market halts $50, $100 bill transactions over rumors of counterfeit $1 billion.
Foreign exchange bureaus in İstanbul and other parts of Turkey have suspended transactions involving $50 and $100 bills as authorities investigate allegations of widespread counterfeit currency, believed to exceed $1 billion in circulation, Turkish media outlets reported on Thursday.
According to a special report by the Habertürk news website, the issue surfaced in Turkey’s touristic regions including southern Antalya, western İzmir and İstanbul, and is linked to counterfeit dollars allegedly smuggled into the country through the southeastern border. Early reports suggest that the fake bills were introduced via foreign exchange bureaus, particularly in places like southeastern Gaziantep province, a key hub for Turkey’s trade with Syria and Iraq.
According to Habertürk, one of the initial cases that led to the allegations involved counterfeit dollars being used in a cryptocurrency transaction in Antalya. Individuals reportedly attempted to purchase Tether (USDT), a cryptocurrency pegged to the US dollar, using counterfeit bills undetectable by standard money-counting machines. The fake bills were identified only after detailed manual examinations by experts.
Speaking to Habertürk, Mustafa Ünver, a board member of the All Authorized Establishments and Foreign Exchange Bureaus Association (TÜYEMDER), described the counterfeiting as “nearly one-to-one,” making it difficult for non-experts to detect. He emphasized the need for updates to money-counting machine software, a process he estimated could take up to 10 days.
“We are dealing with counterfeit bills so realistic that even some ATMs and bank machines cannot distinguish them from genuine currency,” Ünver was quoted as saying, adding that his sector has temporarily stopped accepting $50 and $100 bills to mitigate risks.
Authorities have also uncovered counterfeit euros amid the dollar crisis. In an operation in İstanbul’s Fatih and Zeytinburnu districts, law enforcement seized €3.6 million in fake currency along with equipment used for forgery, including printing machines and watermarked molds. One individual was detained during the raids.
The İstanbul Chief Public Prosecutor’s Office has launched an ex officio investigation into the alleged printing and distribution of counterfeit currency, citing concerns over possible links to black-market operations and terrorism financing.
The crisis was discussed in the Turkish parliament, where opposition lawmakers have raised questions about the government’s response.
Burhanettin Bulut, deputy chairman of the Republican People’s Party (CHP), submitted a formal inquiry to Treasury and Finance Minister Mehmet Şimşek. Bulut demanded answers about the scale of the counterfeit crisis, the origins of the fake bills and measures being taken to address the issue.
“How did over $1 billion worth of counterfeit money cross the border?” Bulut asked. He also criticized the apparent inadequacy of detection systems, noting that only experts examining the bills manually could identify them as fake.
The crisis has paralyzed foreign currency transactions at exchange bureaus and banks, especially in İstanbul’s Grand Bazaar, where warning signs now alert customers that $50 and $100 bills will not be accepted due to counterfeiting concerns.
Shopkeepers report difficulties in distinguishing fake bills from real ones, with many waiting for updated detection technologies.
The Turkish Central Bank and the Banks Association of Turkey have issued statements on the matter.
The central bank announced that it is working closely with the judicial authorities to combat counterfeiting and that it has shared expert reports on counterfeit bills with the banking sector to raise awareness. Technological measures are also being taken to strengthen protection against counterfeiting.
The Banks Association confirmed that systems such as money counting machines, counterfeit detection tools and ATMs are being upgraded to prevent counterfeit money from circulating and ensure uninterrupted financial operations.
In the interim, authorities urge the public to examine their cash and report suspicious bills to law enforcement. The police have provided guidelines on identifying fake currency, including inspecting security features such as micro-printing and color-shifting ink.
The Treasury and Finance Ministry has yet to comment on the matter.
(Turkish minute)