Every year it is the same, wew packages, new "best ever" special commission rates and more money promised for the pound/dollar. But is it really true? I started visiting Turkey about 6 years ago and back then my pound would buy me nearly 3.5 million Turkish Lira and I reckoned that you could live in the country fairly easily with around £300 per month.
Much has changed since then and whilst prices do appear to have risen it is not a significant change, house prices have gone skyward due to the influx of European tourists looking for that economy holiday in a fairly untouched destination and the introduction of mortgages which has allowed Turkish citizens to more easily get on the previously untapped housing market.
Turkey devalued not so many years ago and the Turkish Lira (TL) became the New Turkish Lira (YTL – Yeni Turkiye Lira) and in this time, whether due to the factors outlined above or otherwise, the exchange rate which had headed downwards towards a 1:3 million ratio, became 1:3 a fairly easily understood conversion with the simple removal of all the zeros.
Today, the exchange rate stands at 1:2.3. which in more simple terms means that if I was to exchange £1000 ($1640) 6 years ago versus £1000 ($1640) today I would have received 3,500(million) lira previously or a vastly reduced 2,370 today representing a negative change of 32%. Good news for Turkish travelers abroad, but bad for us Europeans wishing to visit Turkey which leads me to the point of this post.
With the value of exchange seemingly diminishing year on year, it becomes even more important that we don’t let that vacation excitement get the better of us and lose out via our wallets. It seems so easy to leave these things to the last minute and pay over the odds in the banking equivalent of the local convenience store.
A survey reported on by currencies direct suggests the largest differential for holiday exchange stands at more than 11%. They reported that with an average holidaymaker spend of £523 ($862) per week a potential loss of £57 ($95) per week was awaiting the last minute currency shopper.
At a potential loss of £114 ($190) for my upcoming 2 week holiday, throwing that amount of spending money away is simply too hard to swallow and therefore shopping around beforehand is of paramount importance to me.
From experience I do have a few tips to consider if you too are getting ready for an overseas trip;
- Consider your financial requirement ahead of time
- Watch exchange rates and take advantage of peaks in advance
- Avoid using Cash point Machines & ATMs whilst abroad
- For safety take travellers cheques and avoid using your credit cards
- Avoid using Bureau De Exchange (especially at airports)
- Be wary of poster offers that may hold hidden charges and commissions
- Use an established or reputable business to make your exchange
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It is also just as well to remember that
foreign exchange is a two way deal. Firstly, you purchase on your way to your holiday destination, and secondly, it is quite possible that you will also need to
exchange money back on your return, so bear that in mind when making any initial exchange commitments.
Once the financial side is taken care of it’s time to sit back and relax in the knowledge that value for money will pay for all those little extras which less discerning individuals may well either pay over the odds for, or simply feel they can’t afford.
Just 22 days to go for my next trip to Turkey!
Tags:
travel,
money