What effect is the conflict in Turkey doing to their high interest rate savings accounts?

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
There was a thread here last year about banks in Turkey having 10-12% interest savings accounts but the group consensus was that it's too risky. What is the current situation with those accounts? Banks defaulting? Rates much lower? No change?

Member Summary
Staff Summary
  • Also categorized in:
Thanks for visiting FatWallet.com. Join for free to remove this ad.

If it's in Turkey's currency, there's a large currency risk if things get unstable there, or inflation takes off. Remember just converting currencies costs money.

burgerwars said:   If it's in Turkey's currency, there's a large currency risk if things get unstable there, or inflation takes off. Remember just converting currencies costs money.
  Umm, what would you call the events there in the last two weeks? And yes, converting currencies costs money but the exchange rate could just as well be a bonus.

I hope no one invested with any banks backing the coup, because then your money will probably end up purged just like the executives.  Rule of law is gone over there, 10% is nowhere close to enough.

https://www.amnesty.org/en/latest/news/2016/07/turkey-independen...

Yeah heres a chart for 1 year period:

http://www.xe.com/currencycharts/?from=TRY&to=USD&view=1Y

If you'd converted USD to Turkish lira a year ago the Lira would be worth about 36 cents each.   Today they're worth 33 cents.     Thats about 8% loss already.   And it could certainly get worse.

also see:

http://www.ft.com/fastft/2016/07/20/turkish-lira-falls-to-new-re...
http://money.cnn.com/2016/07/15/investing/turkey-military-coup-l...

As soon as my crystal ball comes out of the shop, will let you know.

jerosen said:   Yeah heres a chart for 1 year period:

http://www.xe.com/currencycharts/?from=TRY&to=USD&view=1Y 

If you'd converted USD to Turkish lira a year ago the Lira would be worth about 36 cents each.   Today they're worth 33 cents.     Thats about 8% loss already.   And it could certainly get worse.

also see:

http://www.ft.com/fastft/2016/07/20/turkish-lira-falls-to-new-re... 
http://money.cnn.com/2016/07/15/investing/turkey-military-coup-l...

  
Yeah, its VERY volatile when things get rough.  Back in 1991 it was down to about $0.18 during the Gulf War and shortly after.  Apparently it had been around $0.33 before Desert Storm.

We brought back a LOT of stuff....  I still have one of the big carpets and a cedar chest from then.  I miss the cool handmade leather jacket, though.  They raised Lira prices according to the Air Force guys, but it still came out cheaper after conversion from Dollars.

RedWolfe01 said:   
jerosen said:   Yeah heres a chart for 1 year period:

http://www.xe.com/currencycharts/?from=TRY&to=USD&view=1Y 

If you'd converted USD to Turkish lira a year ago the Lira would be worth about 36 cents each.   Today they're worth 33 cents.     Thats about 8% loss already.   And it could certainly get worse.

also see:

http://www.ft.com/fastft/2016/07/20/turkish-lira-falls-to-new-re... 
http://money.cnn.com/2016/07/15/investing/turkey-military-coup-l...

  
Yeah, its VERY volatile when things get rough.  Back in 1991 it was down to about $0.18 during the Gulf War and shortly after.  Apparently it had been around $0.33 before Desert Storm.

We brought back a LOT of stuff....  I still have one of the big carpets and a cedar chest from then.  I miss the cool handmade leather jacket, though.  They raised Lira prices according to the Air Force guys, but it still came out cheaper after conversion from Dollars.

  Oh, it's a lot worse than that.  The Lira devalued hugely in the 1990s and early 2000s.  In 2003 or 2004, they knocked SIX zeros off the Lira.  In 1995, the Lira was something like 45,000 to the US$, using the old Lira.  That's the equivalent of $22 per new Lira, which are now worth around 33 cents.  So, if you converted $1000 into Lira in 1995, it would be worth around $15 today.  That's a 19% annual decline. 



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017