Just hit 3.30

[Karennina]

Forgive me for being dumb I really do not understand all this but am keeping up to speed with it all on here... If the lira was to collapse what would the implications of that mean to people who have tl in bank accounts in Turkey? 

[Scunner]

The main problem is that if they needed to change it to pounds again they would get far less sterling. For example, if they had £10,000 which they changed into lira when it was 2.5TL/£, they would have got 25,000 lira.

Today, it isn't 2.5 it's (around) 3.5 - so to buy a pound costs 3.5 lira - so their 25,000 lira only buys £7140 worth of quids today - around 30% less than they changed in the first place.

The other problem with the rate going higher is that people who are selling their property (in pounds) now have a very expensive property in the eyes of Turkish buyers. £100,000 meant it would cost them 250,000 lira at 2.5, but they'll need to find 350,000 lira if they want to buy it today. 100,000 lira more for the same house, and the asking price hasn't changed!!

Hope that helps a bit.

[KKOB]

Think of it like this :

You had 200 TL in the bank in the summer and the exchange rate was 2.50 TL to the £. So that's £80.

The exchange rate is now 3.50 TL to the £. Your 200 TL is now worth around £57.

You've lost £23 without even touching it.

[Scunner]

Wot he sed!

[Karennina]

Thank you both of you  :)so if I am planning on leaving my tl in my Turkish account and not changing it to sterling it will be ok left in the bank?

[Scunner]

If you will use it to spend lira on things in Turkey then yes, it would be sensible to leave it in lira.

[Colwyn]

CBank policy still not working. TL down 1% against $ this morning. £ back to 3.6.

[usedbustickets]

More to go I think...3.8 is the new target?.... unless they give in on the low interest rate policy.

[Colwyn]

As a symbolic threshold the € is about to go through the 3 TL frontier.

[usedbustickets]

As it went through the symbolic 2TL to the $ rate before xmas, and let's be honest the Turks are more worried about the TL to Euro/Dollar rates than they are about the good old Pound Sterling!!