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Why is the Turkish Lira so volatile?

22 Aug 2018

It’s no secret that the Turkish currency is currently going through a tough situation!

It’s facing sanctions from the United States, inflation is rising and the country’s debt isn’t getting any smaller. The Turkish Lira is in very high demand as the rates plummeted over the past week and because the rates are so good compared to the pound, supply of Turkish Lira is struggling to meet the demand. Because of this, foreign exchange companies, ourselves included, find themselves unable to sell Lira as they simply don’t have any stock.

So why did this situation arise?

The US President, Donald Trump announced he was doubling import tariffs for Turkish steel and aluminium, sparked by Turkey’s holding of an American pastor Andrew Brunson. The stand-off and rise in tariffs between the US and Turkey saw European markets fall sharply, meaning although this is primarily an issue for Turkey, it could also affect other European countries.

When will the Lira come back?

Good question! Unfortunately we cannot give you an answer for that, but we have a plan to help you get your hands on Lira…

Buying Lira in cash may be difficult at the moment, but if you get yourself a Multi-Currency Cash Passport, you can have all the Lira you want, removing the difficulty entirely. Then you can withdraw cash at an ATM* when you’re in Turkey or pay using the card as you would a normal credit or debit card.

The plus side

The positive spin on this for British holiday makers and expats are that holidays and properties in Turkey are currently VERY cheap. According to The Guardian, you can buy an apartment in Turkey from less than £37,000 and can buy a three course dinner in Bodrum while you’re on holiday for under £10.

*Withdrawing cash from an ATM abroad will incur a small charge.

Ready to book your holiday to Turkey?

Get your hands on a cheap holiday and then make sure you get your currency on a Multi-Currency Cash Passport before you go!

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