kulerucket
Member of DD Central
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Post by kulerucket on Nov 14, 2017 11:12:04 GMT
So much for the 17.5% the GEL seems to be in freefall at the moment. I transferred a bit across when the charge was only 1% and since then my 17% has just been keeping the return at 0%.
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fric
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Post by fric on Nov 14, 2017 11:45:57 GMT
Exactly, that's why they have those very high interest rates - because of currency risk which can be quite high for such a country.
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Post by buttchopf23 on Nov 15, 2017 8:12:30 GMT
Exactly. And the EUR strength at the moment does the rest
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p40l0m4r
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Post by p40l0m4r on Nov 15, 2017 22:14:40 GMT
This falling doesn't follow the trend at all, I think (as a non-expert in trading), Lari is under some speculation action. I link an article: agenda.ge/news/90718/eng
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fric
Member of DD Central
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Post by fric on Nov 16, 2017 11:28:05 GMT
This falling doesn't follow the trend at all, I think (as a non-expert in trading), Lari is under some speculation action. I link an article: agenda.ge/news/90718/engCould be ofc, but its all the risks together why I haven't bought any of those loans. Georgia is a relatively small country, its out of EU, so I would assume its also behind in legislation, freedoms, monetary and economic policies etc etc. Although it seems to be doing quite ok in some of the index like doing business for example, Georgia still has very average government credit rating that indicates that there are risks and uncertainties, the overall economy is small and GDP/capita is significantly lower than any of the EU countries. And don't forget Georgia was involved in a war not so long ago and still has issues with troubling regions, I haven't payed much attention, but the political situation wasn't that stable either in recent years. So yeah, the currency could fluctuate quite a bit as well.
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Post by Jonas Hendrickx on Nov 17, 2017 5:05:03 GMT
Question is to buy or not to buy. I started buying around 2.85-2.9 EURGEL, now it's at 3.2, despite the high interest rate I lost. However over time I should win if it bounces back...
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kulerucket
Member of DD Central
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Post by kulerucket on Nov 17, 2017 7:59:43 GMT
I bought at 2.72 when it was only 1% exchange rate fee. It's a bit annoying but I understood the risk at the time. Still, 17% goes a long way and even with the big drop in value, I'm still close to breaking even (including 2.1% exchange back). It was worth the gamble for a small percentage of my portfolio. If it recovers, I can still make a killing.
I would consider topping up but the exchange fees are too high. At 2.1% each way you are looking at <13% if you leave it for 1 year, so you would have to leave it several years to make it worthwhile.
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Post by Jonas Hendrickx on Nov 22, 2017 10:05:53 GMT
In any case, EUR car loans are currently going as high at 14%. Is the extra currency risk worth it at this point? That extra 3% won't make that much difference. I'm rebalancing my portfolio to 75% EUR and 25% GEL.
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