Yes, buying USD/TRY is different to holding your assets in USD. The latter does not involve any sales of TRY. The name for USD/TRY is a currency pair. You are correct that if the TRY depreciates by more than the interest differential, you will have a profitable trade. However what if the interest rate is 10% or more? Are you sufficiently confident about the future depreciation of the TRY? What if the central bank raises interest rates to 15% or 20% or 50% ? .