For non Turkey related matters that do not fit elsewhere
by Shakespeares 19 Aug 2015, 18:43
I've just seen the latest exchange rates and it got me thinking. Although we don't live in Turkey anymore, at one stage we kept our money in a "Lira" account for the interest payments. Now that the "exchange value" of the Lira has fallen by around 24% and the inflation rate is hovering around 7% this could mean a hefty loss for those still with Lira accounts.
How is it affecting those who are not "Holiday makers"?
by Juco 19 Aug 2015, 19:43
I would imagine if they are getting pensions from the UK paid in Sterling then they are making a killing with the exchange rate.

Juco
by christella 19 Aug 2015, 19:50
i would say 50% not that long ago it was 220lira to the pound i have a bank account but not a lot in it all ways thought there was a catch when i first came to turkey i thought the interest rate was to good to be true im afraid there has been a lot of english lost a hell of lot of money i can remember not long ago a couple sold there property it was 280 to the pound and they said they would hang on till the rate gets better it never has

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bowling is like sex you dont have to be any good at it but you really enjoy it
by Juco 19 Aug 2015, 22:26
Chris you are awash with money, not a problem for you.

Investment is all about timing, get it right you win.

Juco
by oldfogy 19 Aug 2015, 23:08
christella wrote:i would say 50% not that long ago it was 220lira to the pound i have a bank account but not a lot in it all ways thought there was a catch when i first came to turkey i thought the interest rate was to good to be true im afraid there has been a lot of english lost a hell of lot of money i can remember not long ago a couple sold there property it was 280 to the pound and they said they would hang on till the rate gets better it never has

Chris what is it you are referring to when saying '220lira to the pound' & '280 to the pound' ?

The upside to all of this though is for the 'new money' that being from the next group of people investing in Turkey.
So providing the rate drops, then the new money people will be making a good profit.
by christella 20 Aug 2015, 04:33
ok you picked me up on the decimal point
well done

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bowling is like sex you dont have to be any good at it but you really enjoy it
by elizaflint 20 Aug 2015, 09:36
You still do have to calculate the YTL rate of interest in though, over the last five years interest on sterling accounts has been as good as zero ...
Eliza

eliza
by Bugsy 21 Aug 2015, 09:47
We are not holidaymakers & have lived here permanently for 7.5yrs.
I don't think the exchange rate really affects us as we don't have a pension income from the UK. However imported goods have increased in price, so these are more expensive for us now (mainly pool chemicals). Meat seems to have increased in price dramatically, but we just buy less of it now!
I think the only time it would affect us is if we wanted to leave Turkey and take our money with us, as we would not get as many £'s back as we invested.
As we do not intend to do this, we are quite happy here and are hoping that interest rates will increase in the future - which they should've done already.
by elizaflint 21 Aug 2015, 09:54
Well said, it is best not to worry anyway, it doesn't really help (easier said than done). I have just checked back over the last eight years and in fact my cash investment has not lost anything even in sterling terms because I have let the interest accumulate as I do not yet live in Turkey (worst luck). Some people have lost so much more, for example if they bought Spanish property. And then, poor me, I earn in euro, I used to get 0.9 GBP to the Euro, now its 0.73 because of the exchange rate, I really notice the difference but there is absolutely nothing I can do about it. Just have to ride with it, somehow.
And those with stock market investments must be feeling the pain now too.
Such is life!
Eliza

eliza
by Pete Jones 22 Aug 2015, 09:31
I live here permanently and in simple terms with the exchange rate at 4.5 (+still rising) I am transferring money out here to my lira savings account (win) + the savings a/c is paying 10.5% compound (win) but if you are transferring money back to the Uk you will get less £'s to the lira (lose).
If the exchange rate drops back into the 3's I will transfer it back to the UK because I will get more £'s to the lira (win)

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