Posted on 29 April 2010
It’s been a bit of a rollercoaster week for the Turkish Lira.
At the start of the week — April 25th — came a Business Week report on the massive rally the Lira was experiencing, hitting 1.40 on the US Dollar, on reports of Turkish economic growth rate matching that of China. By mid-week, the Lira had experienced its biggest decline, down to 1.50 against the Dollar, as Standard & Poor downgrading the debt ratings of Greece — to junk –, and Portugal — down two notches from A+ to A- — triggered a sell-off of developing nation currencies.
This couldn’t keep the Lira down for long though, because now, just a day later it is back up at a Dollar 50 Cents, which is where it started the week, leaving it ready to continue its rally.
While the Dollar is the gauge by which currencies are measured against, the Lira has also been smashing the old and forming new ceilings against Sterling. In fact, to the best of my knowledge, 1 Pound Sterling has not been worth more than 2.30 Lira in several weeks, and for the last couple of weeks the level has been a least 4 Kurus below the former ceiling, with a new ceiling of around 2.26.
This doesn’t immediately sound like good news for the Turkish property market. Traditionally the weaker the Lira is the better for property buyers as they get their property cheaper in real terms. However, with Sterling still struggling to get past 1.15 Euros, Turkish property is still offering far better value for money to British buyers than that of the Eurozone. And anyone considering buying a property in Turkey will want to see the economy doing well.