Investing in the Turkish Lira
Frequently termed a “newly industrialised” country, Turkey can also be defined as a developed country, by standard definition. That said, it remains a newer entrant to the global manufacturing arena, although its economic resilience is what underpins the lira’s value.
Politically as precarious as they come, Turkey can nonetheless be evaluated in terms of more recent responses to political unrest. The quashing of an attempted 2016 coup was alarming, yet a far better outcome and sign of nationhood that had civil unrest ensued. Perhaps because of its politically disturbing nature for foreign observers, it remains an emerging economy, in spite of its obvious developed status by many metrics. Another currency thus poised between high returns and worrying dips in the eyes of investors, the lira remains an essentially attractive emerging currency.
Having revalued its currency circa 2005, Turkey has always had the reputation of an extremely volatile investment choice. The lira was last pegged to the USD in 1960, and has been a free currency ever since. Re-energising its textile industry and currently pushing its services and manufactured goods industries, Turkey, like South Africa, is often the first to feel investor fears, yet the lira pays handsome dividends at times. As the currency of the country with the seventeenth largest nominal GDP in the world, the lira can present attractive metrics to any portfolio.