Currency of North Cyprus 
Turkish Lira is the legal tender in North CyprusFollowing the 1974 division of the island, Turkish Cypriots adopted the Turkish Lira (TL) but the Cyprus pound remained legal tender until May, 1983. In that year an extensive study was undertaken into the possibility of issuing a TRNC currency up to the level of foreign currency reserves, which were at the time substantial, but a political decision was taken that the Turkish Lira should remain the legal tender. The Cyprus pound is now considered to be a foreign currency and is subject to foreign exchange regulations, but is used as a parallel-market trading currency together with British pound and US dollar. 

The Central Bank authorities issue daily rates based on the previous days free-market rates and the figures provided by the Central Bank of Turkey. As a consequence, the rapid depreciation and high inflation of the mainland have been imported into North Cyprus. There were particular difficulties during the first half of 1994 when the Turkish Lira lost well over half its value against the US dollar. This has prompted the TRNC government to seek the feasibility of introducing or adopting a more stable accounting unit in North Cyprus.