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by terminalcommand
1329 days ago
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To be blunt I never thought of this. We can invest in US equities but US government bonds, I never thought of this. We can buy eurobonds of Turkish Republic if we don't care about liquidity in short to mid term. However usd is another battle. The government utilizes strange tactics (ranging from making it mandatory to convert export proceeds into TL, offering government backed USD adjusted savings accounts in TL, bringing cash from "unknown" sources (it gets listed as "net faults and misses" under Central Banks balance sheet.) So there is inflation but usd doesn't keep up with it always. There are news that the government is highly active in narcotics trade for personal gain of ministers, so I presume we get some black money there as well. The government also gives away any asset the country has in exchange for dollars to foreigners. Most of our national reserves (around 130 billion USD) was sold covertly to unknown purchasers at an unknown price during erdogan regime, so I guess some of that quasi-stolen reserves is also making a comeback. With all that said, they manage to keep usd exchange rate flat for now. So TIPS would only benefit us if we invest for a long term. Look at usd/try to see how crazy it is. Nothing is predictable now. When you lose the rule of law and your democracy, anything is possible. We can easily invest in Us and European stock markets through funds. As long as we pay income tax, we can invest in whatever we want, there are no country restrictions. |
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