Turkish authorities were checking currency exchanges and cash dispenser machines on Thursday to help avert any damage from the circulation of counterfeit U.S. dollars, which has prompted some banks to stop accepting some of the bills.
The central bank said it was working with judicial authorities to address the counterfeiting issue and shared a report and guidance with lenders after examining the fake U.S. banknotes.
The bank issued a statement on Thursday, noting it was carrying out the necessary action in coordination with the relevant judicial authorities to combat banknote counterfeiting.
"Accordingly, counterfeit banknotes, which have recently been covered in the news regarding the increase in the circulation of counterfeit foreign banknotes in the market, were sent to the Bank by the judicial authorities for an expert report," the Central Bank of the Republic of Türkiye (CBRT) said in a written statement.
"The CBRT’s expert reports on these counterfeit banknotes were shared with judicial authorities as well as the Banks Association of Türkiye and the Participation Banks Association of Türkiye to alert the banking sector," it said.
"Additionally, necessary guidance has been provided to caution against counterfeiting in technological infrastructure," it added.
Though it was unclear how much counterfeit currency was in circulation across the country, several banking sources said that several foreign exchange offices and banks were no longer accepting some U.S. dollars, a Reuters report said.
A source with knowledge of the matter said there were no related problems with the financial system.
Several banking sources have said some $50 bills and $100 bills are suspected of being counterfeit and are not currently detected by money-counting machines.
The Turkish Banking Association (TBB) said these machines and cash dispenser machines, or ATMs, were being checked and updated to halt further circulation of counterfeit bills.
The source said a planned rapid system-wide update to money-counting machines would make detection possible.
Earlier in the day, the local media reported that the official investigation by the Istanbul Chief Public Prosecutor's Office was launched upon the claim that counterfeit dollars printed abroad had been put on the market.
The Istanbul Chief Public Prosecutor's Office Anti-Smuggling, Narcotics and Economic Crimes Investigation Bureau took action following allegations that fake $50 and $100 bills printed abroad were being put into circulation in Istanbul and that some exchange offices in the Grand Bazaar had stopped accepting dollars for this reason, Anadolu Agency (AA) report said.
Money-counting machines and ATMs with outdated software reportedly failed to detect the counterfeit currency, prompting a temporary suspension of transactions involving $50 and older $100 bills at currency exchange offices, the private broadcaster CNBC-e said on Wednesday.
The fake bills have reportedly originated from the Middle East, Asia, and the Balkans, according to NTV television.
The report by the private broadcaster Bloomberg HT on Thursday, however, suggested that according to information obtained, the fake dollar banknotes are being smuggled into Türkiye from the southeastern border.
It cited the estimates that the total amount could exceed $1 billion.