The Turkish lira has taken quite a hit recently and has fallen into a downward spiral.
(As mentioned in YellAli’s News post -
Turkish lira hits record low)
During the summer of 2013 the lira stood at 2.73 against the pound and within a month went from 2.73 TL to 2.85 TL.
Towards the end of July 2013 the lira stood at 2.93 TL and now currently stands at 3.57 TL against the pound and 2.16 TL against the dollar -
But is this a good thing?
Obviously this would depend on your point of view and how / if the currency impacts your daily life or living etc.
For example; if you live or trade in Turkey, then the affects can be quite negative, but for holidaymakers and for those of you using pound or dollar – then the falling lira is very good. And even with the new tax increases made in Turkey, it still remains good value.
However, long term the falling lira is not so good. And with prices rising, along with the cost of living, things may seem to be getting tougher and more difficult for many expats. It is also a worrying situation for anyone relying on the lira or for those with Turkish savings accounts. For those people, it is just a case of 'waiting' and monitoring the progress of the lira......
Although, their may be a glimmer of hope as, according to recent news reports the Turkish lira will start to stabilize against the U.S. dollar over the coming months.
Tourism & Turkey
Turkey is one of the top ten destinations for travelers looking for low cost holidays and with the current high exchange rate, tourists will be expecting a lot more for their money and they won’t be disappointed, after all, Turkey does offer very good value for money.
Also, due to the weak currency, tourist numbers are expected to be high this summer, with more foreign travelers seeking affordable holidays to Turkey's coastal resorts.
A weaker currency does promote tourism and the potential benefits for the Tourism industry can only be positive. And with the rising tourist numbers expected this year, this will be beneficial for tourist resorts and local businesses - another positive for the weakened lira!
Holidaymakers will also have more money in their pocket, with an average of 35% more liras than last year.
This is definitely a good thing for Tourists coming to Turkey.
Brits, Europeans and Americans can expect excellent returns on their currency.
Beer – 7tl = 1.98 GBP / 3.23 USD
Packet of Cigarettes – 8tl = 2.4 GBP / 3.70 USD
Meal for 2 - 50tl = 14 GBP / 23.10 USD
Please note: For those of you who want to buy Turkish lira you may want to buy quickly as the currency rate is now at new record lows.