According to the Financial Times, Turkish Lira has lost 40% of its value since the beginning of 2018. In a bid to tackle Turkey’s inflation, which was running at 25% in September, the Central Bank increased interest rates from 19.25% to 24% in September.
Protect yourself from local currency volatility
So what can savers do to protect their wealth and make a profit when there are big risks ahead for their currency or if local interest rates are unattractive or at historical lows? The easiest way to ensure that savers are well positioned in the event of a currency fall, as in the case of Turkey, is diversifying capital into a range of major foreign currencies, such as EUR, USD and GBP. In this scenario, it’s crucial to consider the following before making a decision:
The value of diversifying savings across major currencies
If we had invested 100 Turkish lira or TRY (US$16) in the different ways listed below at the end of 2012, what would the 100 TRY be worth today?
Type of investment
100 TRY investment in 2012
Loss/gains
Value of
100 TRY in 2018
Turkish Lira Deposit Account
100 TRY
-2.24
97.76 TRY
Government Debt Securities
-22.23
77.87 TRY
Stock Certificates
-26.67
74.33 TRY
Gold
+17.24
117.24 TRY
Euros (EUR)
+38.24
138.24 TRY
US Dollars (USD)
+55.24
155.24 TRY
Vivier’s savings accounts offer higher than average interest rates and allow investors to save in a range of major foreign currencies. Our accounts offer the following:
So why not open an account with us today? Please follow the link to find out more about the benefits of our savings accounts.
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