TCs are struggling with the fall in value of the Lira

TRNC citizens are “struggling” to get by due to the continuing fall in value of the Turkish lira against major currencies.

Despite earning wages in TL, large purchases, such as cars and property, are usually priced in pound sterling, which has rocketed in value lately to well over 10TL.

An analysis by CyprusToday ’s sister newspaper Kıbrıs showed that while £1 was worth just 2.24TL in October 2010, it was now worth 10.28TL by the start of October 2020.

The monthly minimum wage, despite being around three times greater than it was in 2010, is now actually worth less in sterling due to the devaluation of the TL.

The minimum salary of 1,237TL 10 years ago was the equivalent of £552.23p, according to Kıbrıs, whereas the current low pay of 3,820TL is worth only £371.60p, based on the above exchange rates.

The paper pointed out that while house prices in sterling have broadly remained the same over the last decade, the amount of Turkish lira needed to purchase such properties has gone through the roof.

A “2+1 flat” on sale for £55,000 would have cost 123,200TL in 2010, but now sets a purchaser back 565,400TL, an increase of 442,200TL.

Likewise a vehicle that cost £10,000 in 2010 would have cost 22,400TL but now costs 80,400TL more, a total of 102,800TL.

Rents are also often set in sterling. A monthly rent of £350 would have been the equivalent of 784TL a decade ago. The same rent now is equal to around 3,600TL and rising.