Sometimes a writer takes inspiration from the most unusual of sources or from the most unexpected series of events to transform it into something new, unique. Here is such an example: what is the link between Gloucester Road tube station in central London, daily life in Kusadasi and the exchange rates between Pound Sterling and the Turkish Lira?
It happened on my last visit to England before heading back south-east to Turkey. As my family had lived in that part of town before relocating to Turkey - what is by now over a decade and a half ago – one quite naturally passes through the neighborhood on a regular basis whenever visiting the United Kingdom to see what’s hot and what’s not.
Back in the old days and as my future wife would often travel between both countries we had to change currencies and a Bureau de Change was conveniently located right in the underground station building. It was not one of those rip-offs declaring ‘no commission’ yet charging a fortune as they already factored in their huge profit margin into the rate displayed outside. So we trusted them. At that point in history one Pound Sterling would get you 2.55 million of old Turkish Liras. It was a figure which would not fluctuate much, hence pre-planning for a permanent move to Turkey was made easy and so was calculating expenses for either my future wife’s or my own trips back and forth; in today’s terms that would be 2.55 new Turkish Lira.
And here we go: on that pre-Christmas walk-past I could not help myself but to discreetly look at the exchanges rates shown behind the counters: 6.891 it said; one Pound Sterling would bring you almost seven Turkish Lira in return. Rates fluctuated a bit since then yet what we would have gotten six weeks ago in London is more or less what you and me would get today here in Turkey.
So there were two absolutely conflicting thoughts on your walking writer’s mind: the first one: a clear ‘wow yes, how beneficial for us expats returning to Turkey’ and the second one: ‘oh dear, how can someone from Turkey ever visit London at these rates?’
Hence the idea for this article was born as even long after having returned the topic of money simply did not want to disappear from my columnist’s radar. In a nutshell: is it positive or rather negative how exchange rates have turned out to be when measured over time?
On the one hand we should be honest: as long as we convert Sterling into Lira we do indeed obtain a very good rate and thus more spending (or investing) money. Assuming that ticket prices have in real terms not changed that much – a regular flight with British Airways or Turkish Airlines 15 years ago would have set us back just under 300 Pound Sterling and does the same today, whilst budget airlines would charge around 120 Sterling for the same pleasure and still do if we look carefully and book long in advance.
So regardless of whether we fly back after a holiday in the UK or already live in Turkey we have an extra bonus. Not only do we share paradise but at the same time it has become so much more affordable. Or has it?
What we often overlook is the fact that exchange rates are no one-way street. What may appear ‘cheap’ for us often means sky-high prices at the other end as markets are global and so are imports and exports. We may have a short-term advantage but our Turkish friends, colleagues and neighbors would tell a different story. Ever more so as the currency situation was not homemade but the result of foreign interventions some call the exchange rate mafia, and in principal, volatile world markets!
What’s more, for our Turkish neighbors traveling abroad has become something which needs very careful coordination including my own family. Companies may face difficulties due to rising import prices. Prices in general may increase making day to day life more expensive.
What I am hinting at is the following: we should not unduly clap our hands and declare luckily we exchange foreign currency so whatever happens around us should not matter. Wrong – it does matter! As Turkey gave us a perfect home away from home and for thousands of us here on the southern Aegean a new permanent abode the worries of our Turkish neighbors should become our concerns, too.
We as expatriates are neither politicians nor bankers so our influence on international affairs is limited. But we can express solidarity with the people who welcome us with open arms. It will ever more so lead to a harmonious future.
That is why we started the first column of a new year with my frank wording of that a strong Turkish Lira is good for us expats, too. It keeps the economy on the up and our neighbors happy and so it should us. Which brings me to my final comment for today: may I wish all our readers a wonderful, healthy, prosperous, and yes indeed very happy 2019!
