Exchange Rates

[starman]

2.21 on internet banking.

[Stressed Eric]

With the UK now supposedly in recession, the Lira will remain strong against the pound until something happens in Turkey to weaken it. I hear the textile industry is in turmoil with exports affected very badly. Will the Turkish government/cental bank step in ?..it remains to be seen. We changed all our lira back to sterling a couple of weeks ago hoping that the exchange rate would return to normal rates...but I'm not sure we've made a good move...we could be in for a long wait.

[stoop]

Eric,

I think you are right - a long wait required before the pound recovers. We could have bought dollars at 1.98 in May and we didn't. We go to the US in Oct and it's now around 1.79! Oh for a crystal ball.

The recession over here is just starting to bite and as things like electric and gas continue to go up by mind boggling amounts people will start to spend less and less on other items and the economy will slow even further - followed by job losses.

Happy holiday  

[sugarybaba]

I have never been much good at working out money rates - bit thick on that score  Now the rate has dropped to below 2.2 should we change the lira to £ and make a bit of dosh?    But if we do, what about the interest lost on the turkish deposit account ?? HELP  -Maybe Dippey or lindacarl can put it into plain idiot proof language thanks !

[number2]

I think you may have a bit of trouble finding anything on here from Dippey these days sugarybaba, she aint been seen on here for years. Alan

[sugarybaba]

Oh really - Dippey seemed to know what it was all about on previous posts    mind you probably some time ago now    trying to keep up !!
Anyone else got any thoughts ??

[chewyturk]

I assume the rate will rise again but who knows when...
Why don't you do a few calculations with different rates to see how you'd fare eg:

Change 22000ytl into sterling - 10000gbp
12 months later rate is 2.5 and you change back 10000gbp into 25000ytl
You'd be 3000 lira better off.
If you did nothing and left your 22000ytl in the bank, how much would you have in 12 months?

Do that for your sum of money with a selection of possible future exchange rates and see if it's worth the gamble.

[sugarybaba]

thanks chewyturk will do ta sue x

[lindacarl]

quote:Originally posted by sugarybaba

I have never been much good at working out money rates - bit thick on that score  Now the rate has dropped to below 2.2 should we change the lira to £ and make a bit of dosh?    But if we do, what about the interest lost on the turkish deposit account ?? HELP  -Maybe Dippey or lindacarl can put it into plain idiot proof language thanks !

Don't ask me - I got it TOTALLY wrong! After the Lira went down to 3.10 to £, fearing it was going to nosedive to 4 to the £ - as many of the financial journalists were saying, we emptied our Lira account @2.70, I think it was 2 years ago? (not that there was much in there to empty!) & now we have a meagre amount sitting in a pound account earning 4.5% or less. I DO have a crystal ball or 2 BUT didn't use them.

You are in unknown territory - it's anyone's guess as to what is going to happen. I have NO idea! Had I left the money in Lira I'd be sitting on about 60% return (if it was 2 yrs ago - 40% if it was 1) or more on my money with interest & exchange rates if I transfered it back to £'s today.

Linda (PRAT OF THE DAY!)

[Stressed Eric]

I worked it out that if you change your lira back to Sterling at a rate of 2.0ytl/£ and then back again at 2.4ytl/£, you would make around 15-16 months worth of interest (calculated at 15.5% net), so if you think the rate will recover in less that 15-16 months, you make money, if not you loose.
Also, if you think the rate will rise over 2.4, or quicker than 15 months, your quids in.
I wonder what the odds would be on that