Monday, 18 March 2024

Monday, March 18/2024


The Turkish lira is a currency in difficulty. That being said, inflated currencies are not necessarily fatal. It’s just that the burden of the difficulty is not borne equally by everyone. One thing that happens is that large ticket items tend to be priced in hard currency, which prevents  having to increase their price daily. Here that normally means in euros or pounds sterling. Actually more often, it seems, in sterling, probably because that was the currency in the days before Cyprus gained independence (1960) whereas the euro was introduced after the North and South split. But the euro is the currency of the South and pretty widely accepted here. Right now the exchange is about 35 Turkish lira to the euro. When we were locked down four years ago it was more like seven tl to the euro.


Obviously items cost more lira now than they did then and some things are genuinely more expensive, but the picture is not as simple as it seems. 


Exactly a year ago I noted in the blog that an Italian Merlot we were buying on sale cost the equivalent of €3.50 (the euro being our most comfortable thinking currency though we do ok in sterling and Canadian dollars as well). At the moment the same wine is on sale at the same supermarket. Had noticed that the price had increased but assumed that was just the way of the world. The new price: 110 Turkish lira. Now equal to €3.14.