Watching the turkish lira to sterling pound exchange rate is a bit like riding a rollercoaster that only seems to want to go down. Honestly, if you’ve been holding onto Lira and waiting for a massive comeback against the British Pound, you've likely had a stressful couple of years. As of mid-January 2026, the rate is hovering around 0.0173. That basically means 100 Lira will barely get you £1.73.
It wasn't always this way. Back in early 2024, that same 100 Lira would have netted you over £2.60. It's a massive slide.
But here is the thing: the story isn't just about a "weak" Lira. It is a complicated mess of high-speed inflation, shifting interest rates in Ankara, and the British Pound's own struggle to find its footing. People often think a weak currency is just "bad luck." In Turkey’s case, it has been a very deliberate, albeit painful, economic path.
Why the Turkish Lira keeps sliding against the Pound
The main culprit is inflation. You've probably heard the numbers. Turkey’s annual inflation rate has spent years in the stratosphere, and even though it finally dipped below 31% in early 2026, that is still incredibly high compared to the UK's 3-4%. When prices rise that fast, the currency loses its "purchasing power."
Basically, the more stuff costs in Istanbul, the less your Lira is worth to a trader in London.
The Central Bank of the Republic of Turkey (CBRT) has been in a tough spot. For a long time, they kept interest rates low while inflation soared, which is usually the opposite of what economists recommend. Eventually, they pivoted. They hiked rates as high as 50% in 2024 and 2025 to stop the bleeding.
Recently, though, they’ve started cutting again.
In December 2025, Governor Fatih Karahan and the Monetary Policy Committee (MPC) cut the benchmark rate to 38%. They did this because they saw signs that "service inflation"—the cost of things like rent and education—was finally starting to cool down. Markets are already betting on another cut to 36.5% later this month.
When a central bank cuts rates, the currency often drops because investors can get better returns elsewhere. That’s exactly what we’re seeing with the turkish lira to sterling pound rate right now.
The Sterling side of the equation
Don’t let the Lira’s fall fool you into thinking the British Pound is invincible. The UK has its own drama.
- GDP growth in the UK is sluggish, projected at just 1.2% for 2026.
- Unemployment is creeping up toward 5.1%.
- The Bank of England is facing "sticky" inflation, meaning they can't cut their own rates as fast as they’d like.
The Pound is actually losing ground against the US Dollar right now. But because the Lira is falling even faster, the "cross rate" (what you get when you swap TRY for GBP) still favors the Pound. It’s a race to the bottom where the Lira is simply running faster.
What to expect for the rest of 2026
If you're planning a trip to Antalya or looking to send money back to the UK, you need to watch two things: the CBRT’s "interim targets" and the upcoming political climate.
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The Turkish government has set a target to get inflation down to 16% by the end of 2026. That is an ambitious goal. If they actually hit it, the Lira might stabilize. But if they cut interest rates too early or too aggressively—which they have a history of doing—the Lira could see another "crash" style event.
There is also the 2026 general election cycle starting to loom in the distance. Elections in Turkey almost always lead to currency volatility. Investors hate uncertainty. If they think the "orthodox" economic policies of the last two years might be scrapped for votes, they will dump Lira fast.
Actionable insights for your money
If you are dealing with turkish lira to sterling pound transactions, stop trying to time the "perfect" bottom. You will drive yourself crazy.
Exporters and Business Owners: If you’re earning in Lira but paying costs in Pounds, you’re in a high-risk zone. Most Turkish industrial giants, like Vestel or Arçelik, have spent 2025 struggling with high borrowing costs and a volatile currency. They are only now expecting relief as rates fall. For smaller players, "hedging" or using forward contracts is the only way to sleep at night.
Travelers and Expats: For Brits heading to Turkey, your money goes incredibly far. But keep in mind that local prices often "re-adjust" to the exchange rate. If the Lira drops 10%, don't be surprised if your dinner bill in Bodrum goes up 10% the next week. It’s better to pay in Lira for small things, but keep your main savings in GBP until you actually need them.
The "Wait and See" Strategy: If you have a choice, holding onto Sterling is generally the safer bet for the next six months. The Lira is currently in a "managed" slide. The CBRT doesn't want it to collapse, but they also want a "real appreciation" through lower inflation rather than just intervention. Until inflation consistently hits those 16-19% forecast ranges, the Lira will likely remain under pressure.
Stay focused on the CBRT’s monthly meetings. Every 150-basis-point cut is a signal that the Lira has more room to fall. If you see them pause or hike unexpectedly, that is your cue that the "easy money" slide might be over.