Quote:
Originally posted by Soul_Rebel
Fred Quimby, yes it's inflation but i was reffering to the real value of turkish lira compared to US currency.
When inflation is high, investors request higher interest rate to lend their money due to risk. The govt usually borrows from the local banks with high interest rates and avoids to take loans from foreign banks. There is some profit to be made, but the margin is small if you see all the factors and the risk is there. Two years ago or so turkish lira was depricated big time within a day; which means if you had any profit it was gone for good.
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Exactly...
And not only that...
I think that those rates (e.g. 21% per year, 1.4% per month), aren't for USD, they are for Turkish Lira, so you will lose if you want to convert currency to Lira and after from Lira to USD (except, of course if you use black market)... So for small amount of money and short period you will not get enough money regarding to risk...
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