Off we go again. The ups and downs of the Turkish Lira.
For the last few months the Turkish Lira (YTL) has been slowly gaining strength against the British Pound (GBP). At one point the Lira reached 2.25 YTL to the GBP, a level not seen for around 4 years, prompting fears that exports and the tourism industry would be hammered by the strong currency. In fact we at Fethiye Times have been concerned at the impact a sustained strong Lira combined with high inflation would hit visitors, Ex-pats and the local economy.
Then, in January the Lira suddenly fell to 2.37 to the GBP but didn’t stay there for long. Last week, the fickle world of finance got the jitters again and the Lira closed the week at 2.52 to the GBP. This is still at a high rate in comparison to the real worth of the currency and a far cry from 2.90 YTL seen around 20 months ago.
Of course, if the Lira continues to weaken it will be good news not only for the tourist but also the Expats living on fixed income arising from the UK. Anyone in receipt of a GBP pension has been battered by the recent strength of the Lira seeing as much as 20% slashed off their monthly income. Not only that but falling deposit interest rates and high inflation made the winter tough for many.
Fingers crossed then that the Lira will continue to slide and settle at its true value that we think should be around 3.80 YTL to the £.