North Cyprus News | Sterling to Turkish Lira in Wake of Bailout Fiasco

North Cyprus News | Sterling to Turkish Lira in Wake of Bailout FiascoNorth Cyprus News | Sterling to Turkish Lira in Wake of Bailout Fiasco

As any British ex-pat living in, or regularly visiting, north Cyprus will have noticed; the British Pound has weakened against the Turkish Lira. The Cyprus Bailout Fiasco will change this. The GBP/TRY rate has gradually fallen from 2.95 to 2.68 and at the weekend had strengthened a little to 2.73. So, how will the fallout from the south’s bailout affect the pound?

It is the Euro which is going to decline as a result of the bailout terms; for the first time hitting savers who, let’s face it, are the only people with any money to raid. When Euros are sold, in the short term they are usually exchanged with another currency or commodities. The increased demand for these means there are less in circulation which increases their price. This will be what happens to Sterling.

The expectation is that five currencies will rise, in this order – US Dollars, Swiss Francs, British Pounds and Norwegian and Swedish Kroner. The same will also apply to Gold. The markets are just about to open on Monday so let’s see what the  next few days will bring. Watch this space!

 

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