Euro sank 13-month low over Turkey's spiralling Lira currency FREE now SUBSCRIBE Invalid email Make the most of your money by signing up to our newsletter fornow When you subscribe we will use the information you provide to send you these newsletters. Sometimes they'll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time. Following a week which saw pound hit its lowest rate against the euro since September 2017, Sterling has managed to halt its recent downtrend. While the pound derived little support from last Friday’s UK growth data, the escalating financial crisis in Turkey has proved negative to the euro. This is due to the European Central Bank (ECB) expressing concerns that Turkey’s dilemma might have knock-on effects in the Eurozone. These fears were sparked in light of the fact that European banks such as BBVA, UniCredit and BNP have ties to Turkey. The pound euro exchange rate is currently trading on the cusp of €1.120 The Turkish lira plummeted by 19 per cent last week as the US piled tariffs onto Turkey amid a widening rift between the two nations. The lira has since extended that decline to 25 per cent. Looking ahead, pound investors are no doubt hopeful of a quieter week on the Brexit front, with the UK’s latest inflation figures due for release on Wednesday. A forecast uptick in the inflation rate may give Sterling a little positive traction in the markets, but a decline in the figure may cause Sterling to fall to new lows. According to the monthly Lloyds Bank International Finance Report, there is very low likelihood of a no-deal Brexit. The Bank of England explains the exchange rate<doc-sep>Turkey Lira crisis: Graph shows shocking state of economy FREE now and never miss the top Royal stories again. SUBSCRIBE Invalid email Sign up fornow and never miss the top Royal stories again. When you subscribe we will use the information you provide to send you these newsletters. Sometimes they'll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time. The Turkish lira has continued to plummet as the country sits on the brink of an economic crisis. President Donald Trump’s announcement of US tariffs on steel played a part in the downward spiral, as did a number of issues within the country. Government spending and high oil prices have all affected the lira in Turkey. Britons looking for a cheap holiday are taking advantage of the strong exchange rate in comparison to the pound to euro exchange rate. While package holidays may remain at the same price, spending will go much further the in the country Having hit a record low on Monday, it means travellers are getting more for their money as the exchange rate between the lira and the pound is up 89 per cent compared to last year. While package holidays may remain at the same price, spending will go much further the in the country. This means shopping, food and drink costs will be much lower in comparison. It also means cheaper accommodation if holidaymakers are paying on arrival as opposed to paying in the UK before travelling. To make the most of the cheap rates, travellers are urged to use prepaid currency card now. Turkish lira: Cheap holidays for Britons this year mean double the travel money Prepaid cards lock in the current exchange rate when topping them up - with the rates at their lowest, they could improve before holidays. Therefore purchasing them now will mean getting the most out of them before travelling. Andrew Brown of Post Office told Mail Online that holidaymakers could get as much as 4,091 Turkish lira for £500. This is compared to last year when it was just 2,174 lira for £500 when purchasing travel currency. Tourism in Turkey has struggled in recent years following a number of terrorist attacks and a failed political coup. Turkish lira: Britons can get double the amount of currency compared to last year Turkish lira: Food and shopping will much cheaper thanks to the strong pound<doc-sep>B ritish 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.<doc-sep>
T urkey's fragile economy was plunged into further uncertainty as the Turkish lira fell by another 9% in early trading on Monday. The latest tumble comes after the lira plummeted by 20 per cent last week, sparking fears that Turkey is on the brink of economic crisis. As a result, tourists are expected to flock to Turkey chasing cheap holiday deals. So why is the Turkish economy in downfall and what does the low exchange rate mean for holiday prices to the Middle Eastern country? Here's everything you need to know: What's the pound to Turkish lira exchange rate? The exchange rate currently stands at 1 GBP to 8.35 TRY, according to Bloomberg. The lira fell by one fifth against the dollar last week alone, but this is the pinnacle of the Turkish economy's gradual demise. Over the past year, Turkey has been the world's worst performing currency, dropping by almost 50% against the dollar in the past 12 months. Why is the Turkish lira plummeting? An accumulation of economic problems has been plaguing Turkey, resulting in the latest series of slumps. There are concerns from investors that Turkish companies who borrowed heavily to profit from a chaotic growth in the construction industry will struggle to pay back loans in euros and dollars, as borrowing costs rise to 18% a year. According to Reuters, over a third of Turkish banks' lending is in foreign currencies, and the weakened lira will mean there is more money to pay back. Inflation is also in turmoil, with rates hitting 15% - still dangerously close to the high of 15.9% in July, which is more than five times the average rate for wealthy nations. All of this is not helped by the worsening relations between Turkey and the US, with US President Donald Trump approving the doubling of tariffs on Turkish steel and aluminium after Turkey refused to free an American pastor held in detention for almost two years. When was the last time the exchange rate was this low? This is a record low for Turkey. The lira fell to an all-time low of 7.2 against the dollar over the weekend, although was recovered to around 6.92 after finance minister Berat Albayrak announced the country would implement its economic plan on Monday morning. US President Donald Trump and Turkey's President Recep Tayyip Erdogan arrive for the Nato Summit in Brussels, Belgium, 11 July 2018. / EPA What does this mean for holiday prices in Turkey? If you want sun, ancient temples and a dirt-cheap beer that will cost you £1.60, according to cost-of-living website Numbeo, then Turkey is the holiday destination you've been dreaming of. Eagle-eyed tourists are already starting to catch on, with travel company Thomas Cook reporting a 63 % rise in bookings to Turkey, making it their third most popular holiday destination. Even better news, tourists changing £100 will now receive around 785 lira, compared to 460 lira in 2017 (excluding conversion fees). 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.”