Pound to Turkish Lira rate: Holidaymakers flock to Turkey to cash in on currency plummet

British holidaymakers are flocking to Turkey to cash in on the country’s currency crisis.

The Turkish lira has been hit by concerns over President Recep Tayyip Erdogan's economic policies and a trade and diplomatic dispute with the United States, a NATO ally.

The lira was around 6.55 per dollar Tuesday, up 6 percent from the previous day, when the central bank freed up cash for banks. It remains not far from the record low of 7.23 per dollar hit Sunday.

The currency has nosedived over the past week, accelerating a months-long decline that has seen it drop 45 per cent this year.

Sales of Turkish lira to British holidaymakers have gone “through the roof”, according to the Post Office.

Currently, the Post Office is offering an exchange rate of 1 GBP to 8.1649 TRY – marking a record low for Turkey.

The Turkish lira is falling amidst concerns Turkey is on the brink of an economic crisis
REUTERS

The number of flights to popular Turkish tourist resorts are also said to have skyrocketed.

The Times reported that Jet2, Britian’s second biggest tour operator, has doubled the number of seats on sale this summer to Turkey.

And Antalya airport, on Turkey’s southern coast, has overtaken popular Brit holiday resorts like Palma de Mallorca and Tenerife as Thomas Cook’s most popular destination for tourists.

Turkey appears to be welcoming a potential tourist boom, with Turkish President Recep Tayyip Erdogan reportedly telling citizens: "If they have their dollars, we have our people, our God.”

The lira's value has fallen by more than 40 per cent since the start of the year.

Its fall has been exacerbated by a diplomatic row with the United States, which has led to the US increasing steel and aluminium tariffs.

US President Donald Trump and Turkey's President Recep Tayyip Erdogan arrive for the Nato Summit in Brussels, Belgium, 11 July 2018.
EPA

On Monday, President Erdogan said the US were responsible for the crisis.

He said: “We are together in NATO and then you stab your strategic partner in the back.”

White House economic adviser Kevin Hassett said on Monday the Trump administration is monitoring the financial situation in Turkey "very closely" after the Turkish currency fell to a record low against the U.S. dollar on Monday.

"We're monitoring it very closely. Treasury Secretary Mnuchin is monitoring it very closely," Hassett, the chairman of the White House Council of Economic Advisers, told MSNBC.

On Monday, Finance Minister Beret Albayrak said Turkey would start implementing an economic action plan on Monday morning.

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