Will the drop in Turkey’s lira

Video : Will the drop in Turkey’s lira

Turkey’s currency, the lira, has hit record lows, creating a headache for the country’s president and pushing up prices on everyday items. But there is one area reaping the benefits: tourism. Bookings to Turkey have gone up in recent months – although the exact cause is, of course, hard to say. A favourable exchange rate though can’t have harmed the situation: on Friday, the US dollar would buy almost six Turkish lira; at the end of January, it would have got you less than four. So what has happened to send the lira on a downward spiral and should more tourists take advantage? What’s happened? The value of Turkey’s currency has nosedived since January and has lost more than 34% of its value against the dollar. It hit a record low on Thursday evening, reaching 6.30 to the dollar, although it has since recovered slightly. Watch video for more details.