BUSINESS
Should we track the value of currency changing?
13 December, 2016
Nowadays everyone needs to control their money correctly, especially in Georgia, whether they work somewhere or don’t. Usually, when we are talking about controlling the money, we mean redistributing our finances correctly. Furthermore, we have to try to ensure that our income is more than outgoing finances, because, in this case, we will always be able to have extra money. But now, I am going to talk about fully different control of money, I’m talking about controlling with tracking value
of currency changing. It may be difficult to understand these words, so I will try to say that in a simpler manner. For example, our income is 2000 GEL, which is about $800. But how much will be our income when currency is 2.6 instead of 2.5? It will be about $700. So, as you see, our income decreased by $100 with this little change of currency value.

But why do we have to track currency of foreign country – exchange rate - when we don’t live there? It’s an easy question to be answered! Not only Georgian products are sold in Georgia. There are hundreds of companies, which sell products from foreign countries. And we can easily understand, that when currency changes, the price of their product will change too. That’s why, tracking the value of currency is necessary.

And those changes are not only for products and services – changes will be for the people, who have got loans, including online loans in foreign currencies. If the currency changes, our loan fees will be changed too and in this case, our fee may be much more, than it was before. Georgians are very well aware of this because of the fact that Georgian Lari is now cheaper for the US Dollar. So people, who had loans in USD, have got much more fees, than it was earlier.

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