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My situation as follow:

I'm planning to go abroad to study a semester during my undergrad, and then do my PhD also in abroad. My future plans are also living in abroad. The currency in these countries are all Euro. Moreover, the value of TL (the currency of my own country) loses its value significantly compare to Euro.

Now, the clever thing to do convert all of my savings to Euro, and invest in the from of Euro, so that my savings will not be affected from the devaluation of TL compare to Euro.

But the thing is as far as I know there are limited investment strategies in Euro in my country, which are still affected by the devaluation. For example, there is something called Eurobond where we can buy bonds in with Euro, but the value of the bond varies when the value of TL changes with respect to Euro, so that as long as you hold the bond until its maturity, the bond behaves as if it is a TL bond.

Question:

What kind of investment strategy to follow when the savings will be used in abroad/ in a different currency then your countries currency ?

Edit:

As @nanoman put it: I can get euros but there is no proper way of (as far as I know) getting any return.

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Convert savings of the Turkey lira to euros but then open a euro-based leveraged forex account and take positions in the lira. The advantage is that leveraged currency positions can be changed in a few minutes time. Now if the leveraged position size is the same amount as the savings then there is no actual leverage.

Also, consider some of the fundamentals. If the Turkey interest rate were to come-down and return-to-normal then Turkey lira bonds would go up in lira value. But if Turkey interest rates were to come-down then the currency might drop on a lower interest rate or the currency might go up on the positive of returning-to-normal.

And I would be inclined to invest in a major European bank that has branches in Turkey. Of course the bank is based in the euro currency, the bank pays a dividend, and the bank will likely have growth over long periods of time.

S Spring
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