With all the bad news coming out of Turkey, both economic and political, it is not surprising that the Turkish Lira is suffering. There are worries over loans not being paid back by Turkish borrowers who found themselves either out of a job or in prison. Confidence in Turkey has dropped and with it the value of the Turkish currency on international markets.
As I write this article 4.70TL buys a £1, and yet a few months ago it would have cost only 3.80TL. This is a huge drop in such a short time against a currency also experiencing weaknesses because of Brexit problems. My guess is that 5TL to a £1 will happen during the coming weeks. The upside is that Turkish products and services will become cheaper to foreign buyers but outside that it looks as if Turkish inflation will return.
A holiday in North Cyprus will become more attractive until the usual ‘catch up’ happens and prices rise to reflect the extra costs. There are still many places where 50TL will buy a 3-course meal with drinks.
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