Money is weird. One day you’re looking at your bank account thinking you’ve got a solid handle on your travel budget, and the next, the lira to pounds sterling rate shifts just enough to make that dinner in London or that hotel in Bodrum look a lot more expensive. If you’ve been watching the Turkish Lira (TRY) lately, you know it’s been a bit of a rollercoaster.
Actually, it’s more like one of those rollercoasters that mostly goes down but has these sudden, dizzying lurches.
Right now, as we move through January 2026, the rate is hovering around 0.0172. That means for 1,000 Lira, you’re getting about £17.20. Compare that to early 2024, when that same 1,000 Lira would have netted you over £26. It’s a massive gap. But if you’re trying to time a transfer or figure out if now is the moment to swap your currency, just looking at the numbers isn’t enough. You have to look at the "why."
What is actually driving the lira to pounds sterling rate?
The Turkish economy is currently in the middle of a massive experiment. For a long time, the Central Bank of the Republic of Türkiye (CBRT) kept interest rates low while inflation was sky-high—which is basically the opposite of what most economists recommend.
Things changed.
The CBRT, led by Governor Fatih Karahan, spent much of 2024 and 2025 cranking interest rates up to 50% to kill off inflation. It started to work. By December 2024, inflation had dropped from its terrifying 75% peak down to about 44%.
But here’s the kicker: as of this month, January 2026, they’ve started cutting those rates again.
On January 15, 2026, the central bank’s policy rate sits at 38%. They are trying to find a "Goldilocks" zone—keeping rates high enough to stop prices from exploding again, but low enough that businesses can actually afford to borrow money and grow. When the CBRT cuts rates, the Lira often feels the pressure. Investors get nervous that inflation will creep back up, so they sell Lira and buy "safer" currencies like the Pound.
The British side of the coin
It’s not all about Turkey, though. The British Pound has its own drama.
Sterling has been surprisingly resilient lately. UK GDP data just came out showing the economy grew faster than people expected in late 2025. While the UK still has its own inflation headaches—mostly food prices—the Bank of England is being very cautious about cutting its own rates.
When the UK keeps interest rates high and the Turkish Central Bank cuts them, the gap between the two narrows. This usually means the lira to pounds sterling rate continues its downward trend.
The misconceptions people have about TRY/GBP
I hear this a lot: "The Lira is so cheap, it has to go up eventually, right?"
Not necessarily.
In the world of currency trading, "cheap" is a relative term. A currency can stay "cheap" for years if the underlying inflation isn't under control. Think of it this way: if Turkey has 30% inflation and the UK has 2% inflation, the Lira must lose value against the Pound every year just to keep the purchasing power equal.
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Another big mistake? Waiting for the "perfect" day to trade.
Unless you’re moving hundreds of thousands of pounds, the difference between a rate of 0.0172 and 0.0175 is pretty negligible once you factor in the fees. Honestly, the fees usually eat your "gains" if you wait too long and the market moves against you.
How to actually move your money in 2026
If you’re sending money from Turkey to the UK—maybe for tuition, a mortgage, or just helping out family—you have a few specific options that don't involve getting ripped off by high-street bank rates.
- Digital Challengers: Apps like Revolut and Wise are still the go-to for most. They usually use the mid-market rate (the one you see on Google) and charge a transparent fee. Bank transfers from Turkey to the UK via these platforms usually take 3 to 5 business days.
- Specialist Brokers: If you're moving a large amount (like for a property sale), look at firms like Key Currency or TorFX. They don't just give you a rate; they give you a human being to talk to who can help you "lock in" a rate for the future.
- SWIFT Transfers: Your local Turkish bank (like İşbank or Garanti) can do a direct SWIFT transfer. It’s secure, but watch out for the "hidden" cost in the exchange rate spread. They might tell you there’s no fee, but then give you a rate that’s 3% worse than the market.
What to watch for in the coming months
The big thing to keep an eye on is the next CBRT meeting on January 22, 2026. Analysts are split. Some think another 100-basis-point cut is coming. If that happens, expect the Lira to test new lows against the Pound.
Also, watch the tourism numbers. Turkey is expecting record visitors this year. When millions of tourists show up with Euros and Pounds to buy Lira for their holidays, it creates a massive "cushion" for the Lira. This seasonal boost often keeps the currency from crashing too hard during the summer months.
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Actionable insights for your currency strategy
If you have Lira and need Pounds, don't try to outsmart the market.
Historically, waiting has cost people more than they gained. If you have a large payment due in the UK later this year, consider a "forward contract" through a broker. This lets you agree on today’s rate for a transfer you’ll make in six months. It protects you if the Lira drops another 10% or 15%.
For smaller amounts, just use a digital platform and do it in chunks. Averaging your rate over a few weeks is much safer than betting everything on one Tuesday afternoon.
Keep an eye on the inflation prints coming out of Ankara. As long as that number stays in the 20% to 30% range, the lira to pounds sterling rate will likely face continued downward pressure. The era of a "stable" Lira isn't back quite yet, but the extreme volatility of a few years ago has at least settled into a more predictable slide.
Set a "target rate" that you can live with. If the market hits it, pull the trigger. Greed is the biggest enemy of a good exchange.