Large interest rate drop

[cef]

quote:Originally posted by banker

He got %14 for the next period  Cef  

[mercury]

We are getting 15% at Finansbank this month then dropping to 13% next. That was today when I spoke to them. After "much" discussion.

[starman]

The TL has lost 11% value since new year, add on the inflation rate and you will then see that 15 or 13 percent is now not that attractive at all.

[number2]

I think it's hell of a lot more attractive tan 1%. Alan

[steveb1]

starman
"The TL has lost 11% value since new year,"???
not to the £

[barry44544]

Has the pound not lost any value aginst other currency then?

[Colwyn]

quote:Originally posted by steveb1

starman
"The TL has lost 11% value since new year,"???
not to the £

In 1st January 2009 you could get 2.2277 to the pound. Today it is 2.5448 = 14% more lira.

[starman]

and thats in 2 months and yet the banks are only giving 13% interest or less. So after 1 year at this rate the lira is diving, those that have savings in lira will lose a lot.

[steveb1]

on the 5th may 2008 the rate was 2.47 the rate now on hsbc 2.449 i do not think 11%

[stoop]

quote:Originally posted by steveb1

on the 5th may 2008 the rate was 2.47 the rate now on hsbc 2.449 i do not think 11%

I think Starman said since the start of this year.

Whatever way you look at it dealing in a foreign currency is always going to be fairly high risk - especially if you ever need to convert the funds back to your native currency. You could be lucky, get a high interest rate and the exchange rate could also go in your favour OR you could pay for that high interest rate when you want or need to convert back - if the pound has made significant gains against the lira.