The Turkish Lira has been in free-fall over the past three months as investor’s concerns have grown regarding the anti-government protests in Istanbul and Antalya.
Of concern to UK investors that own property in Turkey, is the fact that the Turkish Lira has been falling in value by almost 1% per week and the exchange rate compared to Sterling has fallen from 2.68 Lira to 2.95 Lira in just three months. This is having a negative effect on rental returns and capital values in the country.
Because of the political tension in Turkey the Central Bank decided to embark on additional short-term fiscal tightening measures in an effort to drive the value of the Turkish Lira up again.