Let's say you have $100,000USD and you're dealing with a currency that is rapidly losing its value versus the USD, in this case take TRY.
You're a soothsayer and know that TRY is going to hell in a hand basket, so here's one way to profit:
1. Take a loan for the equivalent of $100,000USD in TRY; use your USD as proof that you can pay the loan in a heartbeat
2. Once you have the loan, push your $100,000USD out of the country. Leaving it in the same country as TRY makes it subject to forfeiture and forced conversion that is inevitable in order to protect TRY
3. Use the loaned TRY to buy real estate (preferably in a dense urban area). You don't want to buy rural because of the taxes. You want to buy urban because of commercial real estate potential
4. As TRY continues to lose value, siphon small amounts from your USD to pay the interest of your TRY loan
over time you will profit like a king.
Yeah,right.That's a genus plan.I wonder why almost nobody is doing it and making millions.
1.I don't think that exporting 100K USD outside of Turkey is legal,but I'm not sure.
2.No bank is going to give you loan,knowing that you might get out with the money into a foreign country.
3.The banks usually want collaterals that are bigger than the amount you want to borrow.120%-130%
4.There are some fees,when applying for a loan.You would also need to provide a business plan for the loan.
5.At some point,the Turkish central bank will raise the interest rates.All the banks in Turkey will also raise the interest rates.Good luck with paying off a loan,that has a big interest rate.
6.I don't get it.You want to convert the Turkish lira into USD before you export the money outside Turkey or after you export the money?