23 November, 2022 seen 12,473In this article, I'm sharing notes on how I opened a bank account at ProCredit Georgia Bank back in 2014. Since I…
It has been a while since I last time examined GEL/USD exchange rates. It seems more than four years have passed already. Back in 2014, I was concerned about GEL exchange rates because I had some deposits in Georgian National currency. Now in 2018 I don't feel anymore too much concerned, because I have diversified a lot across multiple currencies.
I stopped any deposits in GEL back around 2015, after losing some 20% in a month, back then I thought I will never invest again in national currencies (Except USD or EUR), with the start with 2017 I started to invest again in GEL currency, this time on mintos.com peer to peer lending platform.
Both individuals and entities can invest through Mintos. Individual investors must be at least 18 years old, have a bank account in the European Union or third countries currently considered to have AML/CFT systems equivalent to the EU, and have their identity successfully verified by Mintos. At the moment, US citizens or taxpayers cannot register as investors at Mintos.
Affiliate link here: Sign up to Mintos.com here.( By using this affiliate link for registration both you and I will receive — 1% of your average daily balance which should be paid in 3 installments for the first 90 days.
On mintos.com platform I mostly deposit lari and then on the platform exchange to EUR to fund EUR loans. In 2017 my Lari funded loans lost in value about 5%. Thanks to the diversification, I was able to minimize risks and ended the year with a humble 1% gain (from interest)
USD/GEL exchange rates 2014 - 2018 (Data Source: National bank of Georgia)
As we can see from the graph above, the first steep value lost has happened around October 2014 - May 2015). Around June 2016 GEL regained some value against USD, but another steep decrease in value followed, reaching its peak around January 2017. For the spring/summer of 2017 Lari stabilized at around 2.4, but another steep value depreciation happened closer to the end of 2017.
Q1 and start of the Q2 seems is a good time for Lari (regaining some value against USD)
I'm looking positive regarding next 3-6 months for Lari currency, but after planned October Presidental Elections in Georgia, I'm seeing a great possibility for lari to drop again. I hope I'm wrong, but that's what the past year experience has shown to us.