It has been awhile since I last time examined GEL/USD exchange rates. Last time I did that, I was pretty worried about hidden devaluation of Georgian national currency Lari.
During the past 4 years, GEL has lost its value against USD by -27.51%
What are historical exchange rates (January - April 12th, 2014)
(Screenshot from National Bank of Georgia)
In last 3 and a half month, period Gel continues to lose its value against USD.
| USD | 1 US Dollar | 2014-01-01 |
1.7366 |
| USD | 1 US Dollar | 2014-04-12 |
1.7515 |
Doing quick math we can easily find out that GEL has loosened another 0.0149 from its value at the start of the year. Doing another math we will find out that if we had 1000 GEL at 01.01.2014 it was equal to $575.83 but if we are doing math today, then for 1000 GEL we can buy just $570.93. We have loosened $4.9 for each 1000 GEL we had.
If you will look a screenshot above you will easily find that at the end of January 1 USD sky-rocketed above 1.780.
I'm calling this a hidden inflation. What do you think?