Help Me With Sign Georgia Banking Word

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we've been talking for years here about investing in Georgia and I've been doing just that I've done a lot of deals in the country and a lot of you have written in and left comments here and on our articles that these videos have inspired you to do the same and so in this video I'm going to talk about my experience investing in the Georgian Lari a lot of people are concerned investing in foreign currency so I'm gonna share my nearly five-year experience with the Georgian Lari and share exactly what's happened with my bank deposits [Music] hey guys I'm Andrew Henderson and if you'd like to learn how Nomad capitalists in my team can personally help you create your holistic offshore plan to keep more of your own money and be more free and create more wealth go to Nomad capitalist dot-com now I've been some would say an advocate of Georgia for many years ago and so if you have learned about Georgia and gone and opened a bank account or bought a property or lived in Georgia leave a comment below I want to see how many of you have taken advantage of this but in this video I want to talk to something that has concerned some folks not just about Georgia but about a lot of in emerging markets and that is the emerging market currencies see one of the things we talk about here is how to earn higher interest rates overseas you can earn you know four five six even sometimes 7% in US dollars right now in emerging world banks I saw a one Bank recently paying 4% on euros which to me seems almost unheard of in a in a place that has basically negative interest rates but the highest interest rates come from putting your money into emerging world currencies and there are a lot of bad emerging world currencies but the Georgian Lori the currency of Georgia is one that I have liked for a while and what I'm gonna do is walk you through four term deposits that I have placed in Georgian banks I have accounts in a couple different banks both in Georgia and Lori and in US Dollars and I've earned as much as two about twelve point four percent deposit me my money in George and Larry now anyone who's followed the currency knows that in about the last five years it's gone from right around to to the dollar to recently hitting three to the US dollars what's gone down a lot of that drop happened relatively suddenly several months ago when Vladimir Putin banned direct flights by Russian Airlines to Georgia in response to some alleged protests that were going on where some politicians from Russia came or folks from the Russian institutions came and were in the Georgian Parliament and and people got upset and so anyway there was a bit of an incident now up until then I was doing relatively well with these deposits I think my multi-year average was I was making about seven or eight even with some of the currency depreciation some were a little bit less and so the lorry had kind of started to reduce itself a little bit in in recent years for a while would have been steady and actually I think it will come back up it actually went from two point nine eight I think was the lowest against the dollar came back up to about two point eight three relatively quickly as I say this now somewhere in the mid two point eight so let me go through four different term deposits now I've had more than four some of these I've cashed out and put back into other currencies I've been reducing liquidity lately but let me walk you through this and then tell you my thoughts so the first term deposit I place now I'm basing my numbers here on on simple interest because generally I'll just take the interest out I'm not really earning interest on the interest I'll just take the interest out and use it for some expenses that I have in Georgia when I'm living there or whatever else so these are generally simple interest so almost all when you're term deposits the first one I placed in December of 2015 December 22nd I believe some of this the data on my TBC accounts it's a little bit hard to put all the pieces together exactly the Lori was right about two point four one on that day and I signed up right now it's at eleven point zero five percent I've just kept renewing it every year it's averaged but nine point nine percent over a little bit more than four years I was able to turn ten thousand dollars generally I just take $10,000 for each tranche ten thousand US dollars into today's exchange rate eleven thousand six hundred and thirty three dollars so about sixteen point three percent return over the course of four years probably better than you would have earned in the dollar even in some of the even in a bank like TBC or Bank of Georgia a little bit better not that much better now the second deposit I put in at two point five eight of Lowry to the dollars of twenty five thousand eight hundred Lori which I purchased with ten thousand US dollars we knew this recently for six months don't recall why honestly got eight point three percent but I've been averaging nine point three percent over the course of about a year and a half however with the drop in the exchange rate I got in just before things started to dip like a month before things started to to go down 10,000 turned into a rather meager 10,000 to await so about 2% return at the course of a year and a half probably on par with what you'd get with a decent term deposit in u.s. dollars in in the US or some kind of developing market not a particularly good one the third one I put in later in 2018 a similar date to the first one 12:21 so December 21st of 18 it's been nine point nine percent the whole time Laurie was two point six six at that time 10,000 turned it over at the same ten to twenty three so in one year and again about 2.2 percent not amazing the fourth one I just did a couple weeks ago as I am sitting here 2.91 Laurie to the dollar at twelve point four percent that's the 24 month rate and so turned that into about the same amount but ten thousand didn't do about ten thousand three hundred hours because I was able to buy on a dip and so the Laureus come back up I'm kidding about 1% a month and that one has done relatively well so if you would have come to me last summer summer 2019 and said hey how are those Laurie term deposits going they were doing much better because you know as you can see I did one Christmas of 2018 2.66 the Laurie then dropped for a while into the 2.7 range stayed there for a while if I recall correctly and so everything while Volare had weakened a little bit it only really weakened on the first one where I've been averaging 10% over the last you know three to four years at that time and the other ones were actually pretty close to two points that one I mean if you lose 3% on the currency and you make 11% a year you're still doing better than you would holding any any major currency anywhere so I don't know that I'm necessarily underperforming what I would get for example you know in a you know priority bank in Singapore I'm just not over performing and so obviously I've taken on some risk by doing these will Volare cross the three to one barrier my impression is right now it won't you know I'm bullish on the lhari and the long term number one I think the country is one of the best places to do business it's on all the metrics they have done some things that you know they've started to do some things that are making it more difficult for things like you know doing business as a foreigner but I still think you know when you compare it to a lot of other countries they are moving in the right direction and there's a lot of good things to say about it it is not one of the total trash currencies and so do I think there'll be a huge rebound probably not certainly the Russia case well I don't think it's gonna be you know a huge issue on an economic level has some kind of weight so on the long term basis I'm happy to hold the currency inflation rates aren't as high as you might think in Georgia and I have some exposure there I spend time there I own property there so I'm happy to hold the currency at these rates I feel comfortable to banks obviously these these returns are not excellent but here's what I would frame it you can look at it two ways you just say you know hey you really you took this extra risk and you didn't get compensated for it now I haven't lost you can see none of these numbers am i down in dollar terms and so that's good you could also say hey that's bad you know you barely made any any returns on the you know and your base currency of the dollar and and to that I would say we saw last year in Georgia a big shock with the the cancellation of these flights from Russia now that aside normally this summer the lhari strengthens because you have more influx of foreign currency rush is a big source of tourists to Georgia and so making it difficult for them to come certainly had an effect that said tourism numbers have been on a very steady increase in in recent years you're gonna probably see I mean close to I think about 10 million tourists in the upcoming year and they do a great job I mean there are times we had a bunch of folks come recently and you arrive and they give you a bottle of wine I mean so they're really innovative and trying to drive tourism they've been very successful with that so I think in the long term you'll do well but the point I'm making is even in kind of this worst case Aereo or one of your largest tourist groups has it made much more difficult for them to come to your country and you have this stress still haven't lost money it's still made basically the same kind of return you would have you would have made parking your money in your home country I don't necessarily think that going forward that's going to change I don't think you're gonna see some sudden drop-off that you saw for example with the Turkish lira I know there are people in this industry who say hey you know go out and get the nine percent of the twelve percent of the fifteen percent even in some countries and you can make up for a lot of sins obviously you don't want to go out and buy a garbage currency the issue with Georgia has been you know what's happening with Russia this is more of an economic issue and as that played out you saw some chaos but still the interest rate was high enough to cover it up so you can draw your own conclusions my conclusion from this is that in an absolute absolute waste case scenario but in a bad scenario you came out okay you have to be very careful in picking emerging world currencies I do think that there are some good banks in Georgia with good access with you know good good for nomads and I'm gonna continue to keep a nominal you know amount of money you know in Georgia it's a very small percentage of my net worth I would encourage that you don't go and put half your net worth or even 10 percent of your net worth in to some exotic foreign currency but for you know 1% of your net worth or 2% of your net worth or maybe a portion of your income to diversify and get that exposure to a foreign bank I think it's something that's worth considering it's turned out all things considered okay for me and still a viable option in my opinion for some people how can nomads capless help you four ways number one subscribe to our channel and click the notification bell to make sure you get our new video every day number two get a copy of nomadic capitalist the book you'll learn a lot of my personal experiences over a dozen years of studying this stuff as well as exactly some of the strategies that you can use to build your nomadic capitalist plan number three if you're not sure where to start but you want to come and learn from my team and I you want to come and mingle with many people learn more about our live conference Nomad capitalist live it's coming up soon and number four if you want some help right now because you've got a birding issue you need something solved you want to lower your taxes get a second passport or 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