Last week the Turkish Lira (YTL) was trading at around 2.25 but yesterday it was at 2.37. Will it continue to drop?
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 pondering how a sustained strong Lira combined with high inflation would hit visitors and Ex-pats alike.
But, in only a matter of a few days, the fickle world of finance has got the jitters. Not only are shares plummeting in value but so too are emerging currencies such as the Turkish Lira. The rate yesterday declined to 2.37 to the GBP but it is still at a very high rate in comparison to the real worth of the currency and a far cry from 2.90 YTL seen around 18 months ago.
Given the panic in the financial markets right now the Lira will probably fall further as traders continue their sell off, but just how far remains to be seen.