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How to Keep Your Wealth Secure and Make a Profit in Turbulent Economic Times

Vivier and Co
27 November, 2018

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:

  • How much day-to-day involvement do you want to have
  • The costs involved in making foreign currency investments
  • The cost of administration fees
  • Tax liabilities

The Value Of Diversifying Savings Across Major Currencies

If we had invested 100 Turkish Lira or TRY (USD 16) in the different ways listed below at the end of 2012, what would the TRY 100 be worth today?

Type of investment100 TRY investment in 2012Loss/gainsValue of 100 TRY in 2018
Turkish Lira Deposit Account100 TRY-2.2497.76 TRY
Government Debt Securities100 TRY-22.2377.87 TRY
Stock Certificates100 TRY-26.6774.33 TRY
Gold100 TRY+17.24117.24 TRY
Euros (EUR)100 TRY+38.24138.24 TRY
US Dollars (USD)100 TRY+55.24155.24 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:

  • Very little involvement, just watch your capital grow
  • Allow capital to move freely with no exchange control restrictions
  • No administration fees as long as the total balance across all your savings accounts remains above EUR 6,000
  • Gross interest is paid across all savings accounts
  • No transfer fees and all bank charges are refundable.

So why not open an account with us today. Please follow the link to find out more about the benefits of our savings accounts.

Tags: Banks

About the Author

Vivier and Co

Vivier and Company Limited ('VCL') is incorporated in New Zealand under registration number: 1130618. VCL maintains an insurance policy with Standard and Poor's A+ rated insurers, providing a $10,000,000 indemnity on any one claim/loss in the aggregate. Contact: vivierco.com


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