Last month alone the Turkish lira exchange rate increased by more than 20%.
On the 26 October 2021, one British pound was worth ₺12.67. One month later on 25 November 2021, one pound was worth ₺15.91. Three years ago you'd have got around ₺6.45.
This is great news if you're travelling to Turkey as it means you'll get more lira for your pounds, but the news is not so good for Turkish citizens who continue to watch their currency - and domestic spending power - erode away as each month passes.
What is causing the rise in Turkish lira?
Turkish lira are becoming devalued in Turkey because the Turkish government is cutting interest rates to try and boost their economy.
This has been seen as the cause of driving up inflation to as much as 20%. Investors are losing confidence in the lira and as much as 40% has been wiped off the value in a year. A BBC article puts it like this:
'President Erdogan thinks raising interest rates causes inflation, and that's the way to combat rising prices is to make money cheaper.'
It is, to say the least, an unconventional view. Orthodox thinking is the opposite: that raising rates encourages saving, reduces expenditure and as a result slows price increases.
Good news for British travellers to Turkey
If you're travelling to Turkey you will get more Turkish lira for your pounds so it should make your trip better value. However, with rocketing inflation the prices of goods including food and drink may be higher than a month ago and certainly more expensive for anyone visiting again. Overall, providing the country doesn't face economic meltdown, it would be of benefit to holidaymakers from the UK and most other countries as well.
Where to get the best Turkish lira exchange rates
We compare dozens of the UK's biggest travel money providers so you can see in an instant who is offering the best Turkish lira exchange rates. Order your lira online for free home delivery, or reserve your currency online for in-store collection.