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Pros and Cons Turkey

Pros and Cons of Investing In Turkey

November 20, 2014
Pros and Cons of Investing in Turkey ETF
  • ProsTurkey is well positioned between Europe and the Middle East for commerce and trade. Geographically, access to water gives Turkey special opportunity to conduct trade through shipping. Furthermore, the central bank has more cushion left with which to lower interest rates and effect monetary policy. The country has solid GDP growth.
  • Cons – Given that lots of the country’s debt is denominated in U.S. dollars and the dollar is strengthening, it may be harder for Turkey to pay off its debt. The interest payments need to be made in U.S. dollars. You see as the Turkish currency depreciates against the dollar then it becomes harder to make the payments.