Welcome to my third savings report, today I will look at historical exchange rates of GEL/USD and EUR and compare those with at the end of January (2015) with February 24.

I started to save some chunk of money back in September 2014, since my "investments" was too small to buy some bonds, stocks or mutual funds, I decided to open a Savings account here in Georgia (I'm currently living here) in local commercial banks.

I started low - by depositing some 300 GEL (what back then equaled to  to $169.68 or EUR 131.81).  I did deposit some 300 GEL for the next 4 months, then I noticed - GEL/USD exchange rates have gone mad (GEL was loosing it's value against USD). I had a feeling I have lost some 14% of my savings. I made probably irrational decision, I exchanged my money (spitted) into 3 currencies. I bought USD and EUR, in order to avoid further loosing moneys value against USD or EUR.

I bought EUR/USD for a very high price, as I believe, after my deal, I lost again 40.27 GEL (due to exchange rates). Now, today I decided to take a look, does my spontaneous decision was right or wrong (Am I still loosing money, or I have break even)

GEL to USD exchange rates

Back in January 31, I spent 413 GEL to buy $200.00, due to exchange rates I immediately lost 20 GEL, because of if I wanted to sell back, I would receive just GEL 393

Date Deposited USD Value in GEL USD Buy USD Sell
30.01.2015 200 393 1.965 2.065
24.02.2015 200 446 2.23 2.35

As of January, thanks to exchange rate, what I bought for GEL 413 now costs GEL 446, I have gained GEL 33.

GEL to EUR exchange rates

Now, I bought some Euros as well, again paying a high price, I spent GEL 466.60 to buy EUR 200.00 on January 31. Due to exchange rates, I would loose immediately GEL 20.2, if I would like to sell Euros.

Date Deposited EUR Value in GEL EUR Buy EUR Sell
30.01.2015 200 446.4 2.232 2.33
24.02.2015 200 500.6 2.503 2.684

What I bought for GEL 466.60 today costs GEL 500.60, I have gained another GEL 34.

Now I can see a pattern here already, during last 24 days GEL has lost it's value against USD by -16.5% and -17% against EUR

Now, I have deposited some GEL as well

Date Deposited GEL Value USD Value EUR USD Buy USD Sell EUR Buy EUR Sell
30.01.2015 685.17 331.80 294.06 1.965 2.065 2.232 2.33
24.02.2015 685.17 291.56 255.27 2.23 2.35 2.503 2.684

From chart above you can see how value of GEL has lost it's value against both to USD and EUR

Now, I was quite rational in middle of February and I spent some Lari (GEL) - I exchanged additional 148.26 Lari to buy EUR 60. Today I made second probably irrational decision to spend another GEL 250 from my savings account on other needs. But before that I deposited another $200 and EUR 179.22 on my savings account. 

Savings account as on February 2015

Currency Deposited Annual % Monthly % Interest
GEL 286.41 5 0.42 1.2 GEL
USD 400 2.5 0.208 0.832 USD
EUR 379.22 2 0.166 0.629 EUR
         
Total GEL 2127.59      
Total USD 942.80      
Total EUR 832.55      

I can agree - it's not a good idea to spend money from your savings account, but taking into account existing situation when Georgian National currency has lost additional 16.5% against USD, It seemed the one and only option to not to loose money more.  

I have kept a small amount of Georgian Lari into my savings account, but I'm planing to spend them into coming days and weeks, but before that I'm looking to deposit more in USD and EUR.

This month (February) I have boosted my monthly deposited money from some 300 GEL to GEL 915.00, though I have removed some 400 GEL this month from my saving account.

In overall I have added some 515.00 GEL to my account (in currency)

In conclusion

Investors don't like to loose money, and me neither.

It looks like my spontaneous decision to split my savings into 3 currencies have proven to be the right approach and helped me to stop loosing money. Due to a weaker Lari against USD and EUR I have win some additional 67 Lari ($30.00/EUR26.00) though I still have lost some 40USD or EUR39 from my savings in Georgian National currency. 

But thanks to a diversified money "portfolio" I have avoided to loose another 17% of my total money assets if exchanged to USD/EUR

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