Latest News
HomeColumnsFeatured ArticlesSending money to Turkey at a beneficial rate – What are your options?
Featured articles

Sending money to Turkey at a beneficial rate – What are your options?

While a depreciating currency value is typically viewed as a negative thing, it actually offers incredible opportunity for international travellers and businesses from various developed economies.

The Turkish lira has been the focus of numerous international headlines of late, with its innate volatility having been exacerbated by the economic policy recently.

More specifically, the Turkish leader Recep Tayyip Erdogan has continually attempted to maintain a low base rate alongside a stable and inflated currency, with the country imposing quantitative easing measures even before the coronavirus pandemic broke out.

This policy has struggled to achieve its objectives, with the Turkish lira recently losing 1% against the dollar to reach its weakest level in six months at the end of last week. This was largely precipitated by rising US inflation, which weakened the purchasing power of the lira as it slipped as far as $8.5800.

In this post, we’ll explore this trend a little further, while asking whether this creates opportunities in terms of transferring money to Turkey from the UK?

The rise and fall of the Turkish lira
Erdogan’s economic policy is certainly at the heart of Turkish lira volatility, although it’s fair to surmise that this currency is naturally volatile given its relative lack of liquidity and perennial weakness against a raft of major currencies.

This policy has also put Erdogan at odds with the Turkish central bank, with the President having sacked a third governor in March after failing to maintain consistently low interest rates and a stable currency value.

This has failed to have the desired effect, however, with the lira still in the red against a raft of currencies across the globe. 

More specifically, it has recorded losses in excess of 9% against both the dollar and the pound through 2021, even ahead of the upcoming Central Bank of the Republic of Turkey (CBRT) decision. Here, new governor Sahap Kavcioglu will announce the region’s updated monetary policy, with a keen focus on interest rates and currency stabilisation.

This trend seems unlikely to abate anytime soon, particularly with Erdogan maintaining an increasingly inflexible outlook when it comes to stimulating growth over an extended period of time.

Transferring money to Turkey from the UK – Is now the best time?
While a depreciating currency value is typically viewed as a negative thing, it actually offers incredible opportunity for international travellers and businesses from various developed economies.

The reason for this is simple; as the decline of the Turkish lira means that investors from the UK can purchase more of the currency through the medium of exchange, creating a competitive money transfer in Europe.

Of course, you can capitalise on these savings and superior exchange rates by selecting the right method of exchange, as dedicated apps now exist to compete directly with traditional banking services.

While banks continue to facilitate international transfers, these will be completed at a predetermined rate of exchange and usually see a commission fee charged on top. Conversely, dedicated money transfer apps tend to offer competitive rates of exchange and minimal (or zero) fees, helping you to retain as much of your cash as possible.

Such apps usually complete transactions within a matter of minutes too, whereas bank payments can take anywhere between three and seven working days.

Ultimately, there’s no doubt that now is the ideal time to buy Turkish lira and transfer money to Turkey from the UK, particularly as the value of the lira continues to plummet.

However, it’s crucial that you use the right method of exchange, as this will help you to get the best rate of exchange and achieve additional savings over time.

Photo by Jéan Béller on Unsplash

Sales & Marketing - Travel Media Applications | Website | + Posts
28/03/2024
27/03/2024
26/03/2024
25/03/2024
22/03/2024