The Historical Peak of the US Dollar Against TL Created an Investment OpportunityTue, Nov 30, 2021 12:00 AM
Turkish Lira has suffered a great depreciation in recent years. Only in three years, the Turkish Lira has lost 3 times its value against the US Dollar.
Turkey is struggling with currency depreciation in recent years. The rapidly increasing depreciation trend reached a historical peak. Although the government still says that everything is under control and their economy is steadily growing, this currency depreciation created an investment opportunity for many foreigners.
Currency Depreciation Will Continue for a Few More Years
According to the experts, the depreciation of the Turkish Lira will continue to lose value in the following years too. Considering the increasing investments in the country by foreigners, the prices either remain the same or increase.
As a result of the new economical strategy of the government, this depreciation is favored by the officials and foreign investors. However, the burden of this recession on the shoulders of Turkish citizens is increasing day by day.
Golden Times for Foreign Investors
Of course, such a currency depreciation already attracted the attention of international investors. Many countries such as China, Qatar, and the United Arab Emirates already started their incentives to take their share from the pie and started investing billions of dollars in different parts of the country.
In addition to this, many foreigners are also investing in the country for holiday homes. Most of them also started to shift their manufacturing processes to Turkey. A few weeks ago, Swedish furniture giant IKEA officially announced that they are going to move all their manufacturing facilities to Turkey in the following year.
Moreover, many foreign individuals started their own businesses in Turkey and operate in various industries such as healthcare, tourism, and education. Despite the currency depreciation, Turkey has a world-class infrastructure for many businesses including information technology.
Is It a Planned Depreciation?
The Turkish government seems quite pleased with the current depreciation. We all know that the government was trying to attract international investors to the country for their future plans. As of now, Turkey is ranking number four in the defense industry and number two in healthcare tourism. In addition to this, the country is considered to be at the top for attracting international students.
It is quite challenging for third-world countries to compete with the developed countries in this liberal structure. As a result, the government adopts a similar economic plan with some of the Asian countries.
They lower the costs in the country to attract more investors so that they can grow much faster and without a challenge. As a result, many experts believe that this is a planned currency depreciation to attract more investors. In fact, numbers also prove that it is working. So, if you are planning to invest in Turkey, these are the best times to take action.