There are three exchange rates that may interest you if you are thinking of going to Turkey for more than a weeks all inclusive. These exchange rates are the international transfer rate, the holiday money or tourist rate and the buy back rate. The first is for larger amounts and involves bank to bank transfers. You will see below that this is by far the most efficient way to transfer money. The transfer rate is based upon the Interbank rate and really does fluctuate by the second and so any quoted rate can only be indicative. The rate you actually get will be the rate at that precise moment when you place your order.
The Tourist/Holiday/Travel money rates are the ones that most people need. This is the rate that most of us will pay when we buy cash for our holiday, use prepaid currency cards and even travellers cheques if you can find someone who will accept them.
The final rate is the buy back rate. At first glance the buy back rate appears to be much better than any of the selling rates but because the transaction is reversed with you selling and them buying the high exchange rate works in their favour. You can see that when you sell your Lira you will only get 25p each for them but when you buy Lira you are paying 26p or 27p each.
|Method||TRY Rate||1 Lira is worth
What prompted this thought was that I recieved an email recently critising our comparison table, apparently we showed too many exchange rates and they only wanted to see the ‘proper exchange rate’. The problem is that any business can set their own exchange rate and they do so in such a way as to make a profit. Looking at the table above if they can buy a Lira at 25p and sell it at 27p then they have made 2p profit. The average family takes about 3,900 TRY with them for a 2 week holiday. 3,900 x 2p = £78 profit for the currency supplier.
Reducing things down to pennies makes exchange rates easier to understand. Take a look at these prices for the Turkish Lira.
NatWest will charge you 29p per Lira when you buy through them, Tesco’s charge 27½p each, Travel FX and ICE (the online specialists) charge 27p per Lira. That is why we always tell you not to buy your travel money at the bank!
* Rates taken at 4.09pm 1st April 2015 http://www.currencybuyback.com/sell/turkish-lira.php