How to short Turkey? How to get exposure to local currency-denominated debt?

Question

After some research, I decided to open a short position on Turkish Lira (TRY), and I'm also looking to short TRY-denominated debt.

To short the TRY-denominated debt, I'd need to short-sell a TRY-denominated bond.

The entry threshold to buy/sell government or corporate bonds is around $200K, what is above what I am willing to risk.

Is there another way to do it?

S Spring · Answer

One major U.S. broker's international trading doesn't offer Turkey.

Then to open an account in a foreign country, without being a resident, usually requires forming a company in that country and having a registered agent in that country. Some websites recommend Northern Cyprus for access to the Turkish financial system.

Or in a home country account, consider buying the USD/TRY currency pair while selling the USD/RUB currency pair.

How to short Turkey? How to get exposure to local currency-denominated debt?

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