Inflation/Devaluation of the Turkish Lira -- What's in it for you? No one used use to consider the relentless process of Inflation (as suffered by the Turkish Lira of old) as 'Devaluation'. But what do you consider a 15% inflation in just 8 work days? Because that's what just happened to the New Turkish Lira (Yeni Türk Lirası - YTL) -- as its value fell from about 76¢ to the US dollar down to 65¢ -- between the 5th and the 15th of May. We think you have to call it an old-fashioned 'forced devaluation'. On Monday, for example, the YTL lost almost 8 percent against the US Dollar (and other 'Western' Currencies) -- falling to its lowest level since 2004. The news media are saying that the precipitous drop is due to "capital flight among investors spooked by Turkey's economic prospects and to political jitters which might loosen spending discipline." We have our own conspiracy-theory 'take' on the devaluation, but this blog is not the place to air it. At least, not right now. In matters like these, one person's misery is often someone else's joy -- and this time is no different. While ordinary Turks may suffer because of it, the devaluation can be a windfall for this year's foreign tourists. In Turkey - Türkiye'de Ads by HepsiBurada So if you've been wavering about whether or not to book your holiday in Turkey this year, it may be time to get off the pot -- and take some action. Because the Turkish portion of your holiday-booking and anything you buy here while vacationing (e.g., Turkish kilims and carpets, a second home or apartment) should cost you 15% less than they did on May Day. Just make sure that your holiday-booking-agent knows about the devaluation -- and knows that you know. Comments Posted by Troll A. Frogg | May 29, 2006 This may be slightly off topic, but does much speculation occur about what might have been the economic benefit of acccepting the $30 billion from USA (in 2003)? And also, does much public discussion/debate arise concerning the massive benefits that Turkey might realize -- in some other exchange with the USA? Jim and Peri's Reply | May 30, 2006 Answer #1 -- In a recent newspaper interview, Süleyman Demirel (former Turkish Prime Minister and [afterwards] President) told Rahmi Turan (Editor of Gözcü Gazetesi) that the greatest mistake of the current Turkish Administration (led by religious-right Prime Minister Recep Tayyip Erdoğan) since taking office, was its failure (in 2003) to produce the required majority parliamentary-vote in favor of a 'tezkere' -- which would have allowed US troops to invade Iraq from the north through Turkey, at the start of the 2nd Iraq War. In the interview, Demirel passed lightly over the lost 'economic benefit' relating to the failed vote -- concentrating instead on the (relatively) poor US-Turkish relations that have arisen as a result of it. He went so far as to say that the US continues to take 'revenge' on Turkey for that failed vote. (Those interested in what happened in 2003 may click the following Yahoo! News article from that time...) Answer #2 -- Turks are a proud people and although a desire for good relations with the US always influences foreign policy decisions, open-air discussions about 'massive benefits of possible exchanges' with the US aren't typical. Post your comment...»