The lowdown on the Turkish Lira
The Turkish Lira is accepted in the following countries:
- Turkish Republic of Northern Cyprus
Economical Influences and the Turkish Lira
If you are considering converting AUD to TRY, it is good to get a snapshot on how the economy may influence the Turkish exchange rate.
As the Lira has a floating exchange rate (a system where the price of a currency is set by the foreign exchange market dependant on supply and demand), the AUD to TRY exchange rate is based on the supply and demand of these currencies on the forex market.1
Turkey’s economy is a largely free-market one, driven by industry and service sectors. Turkey’s GDP has been on the rise since 2016, but its account deficit means it relies heavily on external investment to finance growth.1
Turkish Lira Historical Exchange Rate
The Turkish lira has seen a steady rate of depreciation over the past two years. A mixture of unemployment, inflation and a lack of interest rate adjustments from the Central Bank of the Republic of Turkey are said to be the causes for this.2
Despite a steady few years preceding 2016, as mentioned the lira’s value has decreased within the past two years. Beginning January 2016 with an exchange rate of 1 AUD to 2.13023 TRY, the lira dropped to 2.92312 by January 2017, before its biggest plunge to date in August 2018 which saw the currency depreciate by almost 50% As of 15 August 2018, it was sitting at around 4.72127 TRY to 1 AUD.3
1. Central Intelligence Agency - https://www.cia.gov/library/publications/the-world-factbook/geos/tu.html
2. XE - https://www.xe.com/currencycharts/?from=AUD&to=TRY&view=5Y. Data based on mid-market rates.
3. The Guardian - https://www.theguardian.com/world/2018/aug/12/qa-why-is-the-turkish-lira-in-freefall-and-should-we-worry
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