8 ms·

Does interest rate resolve in USD or turkish lira? Isn't it a no brainer if its pays in USD to invest, as long as turkish central bank is solvent?

• imachine1980_ 3y ago
  turkish lira, venezuela month before a the hiper inflation and total default risk have 30% in dollars. 42% is dumb the inflation 42.5% so probably banks are making bucks here taking debt under inflation rate and lending over it, like happens in aregentina betwen 2008-2014.
• deleted 3y ago
  [deleted]
• the_mitsuhiko 3y ago
  The interest rate applies to lira bank accounts. It wouldn't be a good investment, the lira lost 36% to the dollar YTD.
• okl 3y ago
  That's why they have restricted it, e.g., https://www.reuters.com/business/finance/turkey-imposes-restrictions-lira-loans-fx-rich-companies-watchdoganadolu-2022-06-24/ https://www.reuters.com/business/finance/turkey-imposes-rest...
• xxpor 3y ago
  Lira.
• mertd 3y ago
  Lira obviously. There used to be a Lira savings account scheme which was protected against FX risk by the government to encourage savings in Lira but I believe that's no longer offered.
• yetanother12345 3y ago
  FWIW, around a month ago I researched how to open a Turkish bank account in order to benefit from the high interest rate level by depositing some money there, but I had to give up. It seems to be hard to impossible for a non-resident. (The OP talks about central bank rates and a recent increase, but consumer banks have had accounts with high rates (relative to other investment alternatives) for a long time. Just nowhere as high as this.)