Investments Affect Cost of Living in Turkey
Since April 2007, the USD has depreciated from 1USD = 1.36YTL to a new low of 1USD = 1.16 in November. Mahmut Kocak, Country Manager for the Woolmark Company in Turkey gave me three reasons for the depreciation. All three speak directly to the climate for investment.
1. The anti-inflationary monetary policies by the Turkish Central Bank and the highest interest rate in the world of 17 percent.
2. A stable one-party government implemented one of the longest IMF Stabilization programs in the world which has attracted large investments in TL instruments.
3. An ever-increasing influx of foreign portfolio investments where foreign investors exchange USD for YTL to invest in high-return financial instruments.
Don't forget that government privatizations continue which has up to now attracted a lot of foreign investment, and in 2008, a peak is expected.
So, let's look at an example of a one-bedroom apartment and see how much things have changed since the 2001 crash.
2001: USD = 1.70YTL; Apartment Rent was 275YTL. Rent was $162.
2007: USD = 1.16YTL; Apartment Rent is 770YTL. Rent is $664.
While this example shows a 280 percent rise in rent, all daily expenses have also risen in a similar ratio and possibly even more.
Bea Vanni works with non-fiction authors, educators and SMEs who want to gain visibility for their work and attract more clients through high-quality writing combined with business solutions.Visit Now
| 
