Money in a Turkish bank

I have a considerable amount of money invested in a Turkish bank - in Turkish Lira. Considering that as at today 30 April 2015 the £ - TL rate is 4.10 would it be better to leave in the bank or draw out in another currency.

Which currency would be better??

Peter,

the Pound Sterling Turkish Lira exchange rate has soared during recent months. The Lira has been hard hit by conflicts in neighbouring regions, (the TRY continues to act as a proxy trade for the less tradable Egyptian Pound / Syrian Dinar / Iraqi Dinar).

The situation in these nations is entrenched and more likely to deteriorate than improve during coming months. Meanwhile, the US Federal Reserve is likely to announce an interest rate hike this side of Christmas – a move which will hit the emerging market currencies, (including the Lira), hard.

For this reason, I would consider selling your TRY into something more stable sooner rather than later. The Pound might be a good buy post-next week’s UK General Election.

Regards,

John Cameron
currencynews.co.uk
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