Turkish Central Bank guarantee- would you trust?

[GCM]

Dear mates,

a friend of mine works in turkish central bank telling me to transfer my money [EUR] there to get per year 5% interest under turkish central bank guarantee.
I did some research, it's true.
Government there needs obviously money since there are elections and Erdogan may try to keep turkish Lira stable at least, until elections. Afterwards a collapse is possible.

What do you think about this? 5 % is something you won't ever get in EU-zone, but were interest are high risks are even higher...

 

[void]

it's absolute nonsense in terms of risk/reward...

banks in Czech republic offer savings accounts currently giving 6% in CZK - just saying in case you're looking for an adventure

 

[TheCryptoAnt]

lol

Id rather go with Georgian bonds, they issue them in lari, USD and EUR

Turkey is at the level of Argentina

 

[Martin Everson]

telling me to transfer my money [EUR] there to get per year 5% interest under turkish central bank guarantee.

A Turkish central bank guarantee is worth nothing - they can't print Euros.

Have you even seen Turkeys sovereign rating? Its a deep junk rating by all 3 major ratings agencies.

Rating: Turkey Credit Rating 2024

countryeconomy.com

 

[Forester]

it's absolute nonsense in terms of risk/reward...

I agree completely.

banks in Czech republic offer savings accounts currently giving 6% in CZK

Yes they do; but take into account that inflation for CZK is currently ~20%.

- just saying in case you're looking for an adventure

I'd call it madness, too

 

[JohnnyDoe]

Staking some crypto would be smarter.

 

[369]

it's absolute nonsense in terms of risk/reward...

banks in Czech republic offer savings accounts currently giving 6% in CZK - just saying in case you're looking for an adventure

wow your logic like always insane.
Matching an apple with an egg.
EUR and CZ have both total diffrent inflation rates.

5% means you are losing money anways.
Real EUR inflation is way above 10%

Also holding EUR is a stupid idea when you are looking how EU is performing.

 

[void]

wow your logic like always insane.
Matching an apple with an egg.
EUR and CZ have both total diffrent inflation rates.

5% means you are losing money anways.
Real EUR inflation is way above 10%

Also holding EUR is a stupid idea when you are looking how EU is performing.

OP was happy with 5% on a market comparable with Lebanon or Argentina
I'm giving him an example of a country on another level of safety with even better interest rate to illustrate that Turkey makes no sesnse - it doesn't mean I recommend that

official inflation rate has zero value and is completely manipulated (I'm fine to disagree on this...)
the real inflation is totally subjective and dependent on the situation of an individual or company

it's not a good time to buy CZK now, but for somebody already holding CZK, earning nice yield, considering current CZKEUR and CZKUSD it's a pretty sweet position (yes, it may not last long) - especially when your not spending on their local market