British Pound Sterling to Turkish Lira exchange rates aren't all the same.
The total cost you are charged by your bank or foreign exchange provider consists of a margin from the interbank mid-rate plus fees.
These margins and fees vary significantly for International Money Transfers and Travel Money transactions as shown below.
90-DAY TREND: At 7.6034 GBP/TRY is trading 4.4% above the average 7.2815 with a range 6.9217 to 7.6042. ALERTS: GBP/TRY is UP 2.3% this 4-DAY period and has also risen to 90-DAY HIGHS.
Exchange rates can vary significantly depending on the transaction type (transfer, cash or card), currency pair and amount. The below table shows an example of total costs charged by FX specialists and banks for GBP/TRY International Money Transfers. Costs are calculated against the current interbank mid-rate.
Example of the margins and possible savings when you order travel money online with a currency specialist rather than in-person from banks and currency kiosks.
When determining the best time to make a foreign exchange transaction, in this case the GBP vs TRY, you should pay attention to the recent market trends for both currencies.
British Pound Sterling (GBP)
Sterling has climbed more than 5 per cent in October since Boris Johnson announced a new Brexit agreement with Brussels that has reduced the possibility of the UK crashing out of the EU without a deal. Pound valuations will continue to fluctuate based on Brexit No-deal, Deal and Remain probabilities. Currency strategists predict that gains in the pound would remain limited for now while parties prepared their election campaigns.
The pound would be doing far worse if it weren't receiving some support from the Bank of England which, surprisingly, is the only major central bank still considering higher interest rates in 2019.
Earlier in the year the pound was the worst-performing major currency by some margin. It slipped in late June to multi-month lows against a number of important currencies, including the Australian dollar, New Zealand dollar, euro, Canadian dollar and Swiss franc.
In the second half of April, the lira slipped to its weakest level in 6 months against the dollar, at ₺5.83. It was 11.5 percent lower than its strongest level from January, but was 21.5 percent higher than its 2018 low (2018 was a crisis year for the lira).
In April, Turkey described a reform package aimed at lifting the economy out of recession. The package included billions injected into banks, reduced tax exemptions, lower corporate tax rates and a crackdown on the shadow economy; however, ratings agencies did not see many positives in the plans due to inadequate details.
TradingEconomics.com sees the lira quoted 5 percent weaker against the dollar in April 2020, at ₺6.14.
Why can't I just get the GBP/TRY market rate I see online or in the media?
The mid-rate is the rate you will see quoted online or the news. It is actually just the half-way point (hence mid-rate) between
the last rate at which the GBP / TRY was traded (bought or sold) in the international markets.
All foreign exchange providers charge a fee for providing their service and this fee is usually contained within the exchange rate margin (or difference to the mid-rate).
Some providers such as Transferwise will quote you the mid-rate (or close to) and charge a separate percentage fee.
Getting a good market rate is mainly about timing however the transaction margin
you end up being charged can be considerably reduced by around a few percent (of total amount being exchanged) for
travel money and possibly over 5% to 6% when sending money.
The exact potential savings depends on the currencies being exchanged and the amount you are transferring and if you are willing to shop around.
