Kibkom North Cyprus Forum

Does anyone know what this report in KP Daily News means? It is not very clear as to whether all exchange rates have been fixed or just for government purposes. I normally change my money when I arrive as I get a better rate in TRNC but if the exchange rate has been fixed it might be better to buy TRY elsewhere and get the going rate?
http://www.kpdailynews.com/index.php/ca ... LOCAL_NEWS

I suspect the key words are "...the foreign currency exchange rate is being frozen for 90 days on imported products".... Perhaps it means that importers are going to be forced to offer lower than foreign sellers ask for - resulting in fewer imports if the sellers are not willing to drop their price?
I'm sure someone more versed in international finance will be able to explain...

That's the way I read it, so can we expect shortages in the shops, causing more shopping trips to the South?

The rate of exchange when you go change it is what it is that day. Way my husband is explaining it is if you buy cars, tractors etc they cannot charge more than 4.1 please do not take this as gospel, but that's the way was explained to me.

As it has been explained to me (by Kemal) this only applies to monies owed to the government that are denominated in foreign currencies - like say when the tapu evaluates taxes due on buying / selling a house that is priced in sterling, the taxes will be calculated on that sterling amount and converted to TL by these fixed rates and not the current market rate.

Erol your explanation makes sense or the TRNC would try and be King Canute of John Major and the exchange rate mechanism(ERM) and be washed away by the tide

wanderer wrote:Erol your explanation ...

Well not mine really but Kemal's. What I read made no sense to me so I asked Kemal what it all meant and he was the one that made sense of it for me. I am merely the 'messenger' in this case.

Thanks everyone for explaining what was meant. I am relieved to find I was not the only one who had difficulty making sense of it all!