Turkish Lira exchange rate rise explained

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This won’t be the first time we’ve written about the extraordinary rise in the exchange rate for Turkish lira against GBP. In the last month alone it has increased by more than 20%.

On the 26th October you would have got ₺12.67 to the pound. On the 25th November you can get ₺15.91.

However, the exchange rate rise starts way back in 2018. Three years ago you would have got around ₺6.45 for every pound. Since 2018 the TRY exchange rate has increased month on month to the present record levels.

Why is it happening

The reason you can get more TRY for your GBP is the value of the currency is falling in it’s own country. This makes it cheaper for the wholesalers to buy and as a result can offer better rates.

The reason the currency is struggling in Turkey is because the government is cutting interest rates to try and boost the 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. An article from the BBC 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”

Is it good news

Well, in the short term for holidaymakers going to Turkey from the UK it’s great news! You will get more TRY for your British pounds so it should make a holiday in Turkey great 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.

Is it easy to travel to Turkey

In a nutshell, yes. The entry requirements as of November 2021 are:

All arrivals to Turkey from the UK must complete an online form of entry up to 72 hours prior to travel. This applies to all travellers aged 6 and above. You will also have to complete a passenger locator form prior to entry. Your airline or carrier should advise on this.

All arrivals from the UK aged 12 and above must show proof of the following:

  • A full course of Covid vaccinations
  • A recent recovery from Covid-19
  • A negative PCR test taken in the 72 hours before arrival
  • A rapid antigen test taken in the 48 hours before arrival

There are different regulations if you are travelling or transiting from other countries. In particular there is a requirement to quarantine if entering from some neighbouring countries. The Foreign, Commonwealth and Development Office (FCDO) have advised against travel to certain areas of Turkey. In particular areas that border Syria. Full details of all entry requirements and general travel advice can be found on the GOV.UK Turkey travel advice page.

For more information on the TRY exchange rate you can visit our British pound to Turkish lira exchange rate history page where you can see the phenomenal rise. In terms of the fate of the currency in it’s own country things remain to be seen. As for 2021 the Turkish lira has been described as worlds worst performing currency. Many holidaymakers taking a trip to the beaches of Marmaris may not wholly agree!

Posted by Graham Morley

Graham is the Business Development Manager for Compare Holiday Money.

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