Investing in Turkey

Gunnerbean

With the interest rates here being so low at the moment, I have been advised that it might be a good idea to invest some savings, which are simply sitting in a savings account at Nationwide year after year earning next to nothing in interest, over in Turkey.

Apparently any of the major high street banks in Turkey offer a typical interest rate of around 7.3% on accounts held in £ sterling. The rates for Turkish lira accounts are higher by all accounts. This money has not been touched for years so the need for instant access to it is not an issue. Obviously if the money is held in Turkey in £ sterling there are no exchange rate issues, which is something that has always bothered me in the past.

I am told that he Turkish economy is doing well and has been stable and growing for a few years now and is not as unstable as it once was. It even seems to have weathered the most recent international financial crisis.

I have Turkish relatives and often travel to Turkey so this would seem to be a sensible idea on the face of it. The problem is, I'm not sure and need advice from people who know about these things.

Any thoughts/advice gratefully received. Thanks in advance.

srcandas

Sorry op can't directly help but I have been looking at investing in Turkish companies. With their desire to join the EU I have a feeling great efforts will be made to meet European stability requirements (although with the current Euro mess that might seem a bit of a joke).

So any thoughts on broader investments in Turkey would interest me.

Sorry gunnerbean to piggy back but hopefully someone can help us both. :beer:

Thrugelmir

Gunnerbean wrote: »

Apparently any of the major high street banks in Turkey offer a typical interest rate of around 7.3% on accounts held in £ sterling.

How do you propose depositing and accessing the money?

Sceptic001

Gunnerbean wrote: »

Apparently any of the major high street banks in Turkey offer a typical interest rate of around 7.3% on accounts held in £ sterling.

That sounds very unlikely. Do you have any links to Turkish bank websites to confirm 7% rates on sterling deposits?

Biggles

Judging by www.turkishbank.com, it's 7% or even more in the local currency. But maxima of 2% in EUR, 1.8% in USD and 1.35% in GBP!

But my Turkish is rusty, your translation might be more accurate...

srcandas

Gunnerbean I've talked to some folk in Turkey and also have discovered that they are only getting about 1.5% :beer:

oldtoolie

Back in the 1980's, I knew quite a few people with US dollar bank accounts in Mexico drawing very good interest rates. Mexico had a stable government and economy. The 12.5 pesos to 1 dollar exchange rate had existed for decades. Then one day, the economy wasn't so good, the Mexican government devalued the peso and converted all USD accounts to the now devalued peso. Risk and return are co-joined twins.

atush

try a fund or investment trust that covers turkey as an emerging market.