Live and Historical EUR/TRY Rates
This chart compares the value of the euro (EUR) against the value of the Turkish lira (TRY) – that is how many Turkish lira purchase one euro. As a major currency, the euro is one of the most traded currencies in the world but because of the small influence of TRY, EUR/TRY does not form a major or a commodity pair.
The euro is not the only currency used in Europe-quite a few countries in the European Union (EU) have not converted from previous currencies. This is one of several factors that have analysts concerned when considering the staying power of EUR. EUR is only as strong as the countries that back it, and the weakening economies of Greece, Italy, Portugal, and Ireland are also a disconcerting factor to analysts. Perhaps the greatest concern is whether the experiment of a shared currency will necessitate stronger economic and fiscal management between Eurozone countries. Major industries in the Eurozone include tourism, agriculture, and manufacturing.
The Turkish Lira
The Turkish lira was instated in 1844 and spent a century on the gold standard. In 1946, it was pegged to the US dollar and French franc. In 1960, it was devalued and pegged to the dollar. From 1960 to 2001 it lost value at a staggering 40% a year rate. This dropped values from 9 lira to the dollar to 1.3 million per dollar. In 2007, a new lira was introduced at 1.26 to the dollar and has remained relatively steady since. Turkey is primarily agricultural, with a small textile industry. It is the world’s largest producer of hazelnuts, cherries, figs, apricots, quinces and pomegranates. It also exports textiles, oil, and chemicals. As such, it is a minor commodity currency, but with a very small footprint compared to other currencies. Major trade partners include the European Union, the United States, Russia, and Japan.
Turkey has been interested in joining the EU and using the euro, but it is has been unable to meet the economic requirements of the EU. As a small currency, TRY tends to be more unstable and subject to a diversity of factors, one of the largest of which is political problems in the country. This makes the pair rather volatile and offers large, but risky opportunities for profit. TRY is also heavily influenced by the quality of the growing season and by agricultural yields. At times, the pair has been useful for carry trades.