Bank interest rates

[mrkeith]

quote:Originally posted by stoop

As mrkeith implies - be careful that you don't put all your eggs in one basket. However he's slightly too simplistic saying that it's difficult to make money when you decide to move it on. If you buy in at 235ytl and have the same amount of cash in say 2 years time it will depend on the exchange rate at that time exactly what you will make or lose. Many people invest in currency and make money this way - just by buying in at one price and selling it back at a better price.
Yes they do and I have done so in the past but then summer and winter rates varied more than now, the Turkish economy is too stable for speculation of that sort unless you have a big investment

[stoop]

quote:Originally posted by mrkeith

quote:Originally posted by stoop

As mrkeith implies - be careful that you don't put all your eggs in one basket. However he's slightly too simplistic saying that it's difficult to make money when you decide to move it on. If you buy in at 235ytl and have the same amount of cash in say 2 years time it will depend on the exchange rate at that time exactly what you will make or lose. Many people invest in currency and make money this way - just by buying in at one price and selling it back at a better price.
Yes they do and I have done so in the past but then summer and winter rates varied more than now, the Turkish economy is too stable for speculation of that sort unless you have a big investment

Turkish economy too stable?

Speculation of what sort?

You are talking to an ex Financial Adviser of 20 years standing here mrkeith.

[mrkeith]

I am not trying to be clever just to explain myself and it doesn't matter what or who you are to me what I am trying to say is that the rate doesn't change as much as in the past that's all. You said I over simplified things well sorry but that's how laymen look at things if you want to explain in a little more depth please do so .

[stoop]

OK - If the Turkish economy is 'too stable' you are saying the value of the Lira will not alter as much? However the value of the Lira against other currencies does not just depend on Turkish economic stability. If it did then investing into the currency market would be a doddle.

Sterling has recently increased in value against the lira. Why? Is the UK economy more stable or the Turkish one less?

If you decide to invest in the currency market or indeed the stock market then you are getting into fairly high risk investments and having a 'big investment' will not alter the currency rates - just how much you gain or lose.

In layman's terms - it's risky but if you do invest your capital into any currency you should remember you can gain or lose at the point when you want to change it back again.