North Cyprus Consumer | Banking on the Turkish Lira

North Cyprus Consumer – Banking on the Turkish Lira

So, you have £20,000 and you want to put it in a savings account in north Cyprus. The Turkish Lira is 3.20Tl/£1 and in 12 months time it could be either 2.90 or 3.50TL/£1. Only a guess, or it could be the same as now. There are three saving possibilities, of course not but for simplicity let’s say there were. Either put all the money in a TL or a sterling account or split your savings between the two. Here is what could happen:

It’s a simple chart showing what you’d get in TL at the end of 12 months depending on whether you go for TL, sterling or a split between the two. It depends on whether you believe TL will weaken over that period. If it does then sterling is the best bet even though you only receive 4% instead of the 8% you’d get in a TL account. If you believe TL will strengthen then a TL account would be best as it would be if the TL/£ rate stayed the same, i.e. 3.20TL/£.