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Rubl lari: A guide to the currency pair and its history



Rubl Lari: What You Need to Know About This Currency Pair




If you are interested in trading or investing in foreign currencies, you might have come across the term rubl lari. But what does it mean and why should you care? In this article, we will explain everything you need to know about this currency pair, including its history, current situation, and future prospects. We will also give you some tips and recommendations on how to use rubl lari effectively.




rubl lari



Introduction




What is rubl lari?




Rubl lari is the currency pair that represents the exchange rate between the Russian ruble (RUB) and the Georgian lari (GEL). The Russian ruble is the official currency of Russia, while the Georgian lari is the official currency of Georgia. One ruble is divided into 100 kopeks, while one lari is divided into 100 tetri. The currency code for the Russian ruble is RUB, while the currency code for the Georgian lari is GEL. The currency symbol for the Russian ruble is , while the currency symbol for the Georgian lari is .


Why is rubl lari important?




Rubl lari is important because it reflects the economic and political relationship between Russia and Georgia, two neighboring countries in the Caucasus region. Russia and Georgia have a long and complex history of cooperation and conflict, which has influenced their trade, tourism, and diplomatic ties. Rubl lari also affects the purchasing power and living standards of people who use these currencies, as well as the profitability and competitiveness of businesses that operate in these markets.


How to convert rubl lari?




To convert rubl lari, you need to know the current exchange rate between the Russian ruble and the Georgian lari. You can find this information on various online platforms, such as Xe.com, Wise.com, or Bing.com. Alternatively, you can use a currency converter app or calculator to do the conversion for you. For example, according to Xe.com, as of June 18, 2023, 1 RUB = 0.0311053 GEL, which means that one Russian ruble is worth about 0.03 Georgian laris.


History of rubl lari




Origins of the Russian ruble and the Georgian lari




The Russian ruble has a long and rich history that dates back to the 13th century, when it was first introduced as a silver coin by the Mongols. The name "ruble" comes from the Russian word "rubit", which means "to chop" or "to cut", as the coins were often cut into smaller pieces for convenience. The Russian ruble became the official currency of Russia in 1704, under the reign of Peter the Great, who reformed the monetary system and introduced decimalization.


The Georgian lari has a much shorter history, as it was only introduced in 1995, after Georgia gained its independence from the Soviet Union in 1991. The name "lari" comes from the Georgian word "lar", which means "treasure" or "property". The Georgian lari replaced the Georgian coupon, which was a temporary currency that suffered from hyperinflation and devaluation. The Georgian lari was pegged to the US dollar at a fixed rate of 1.3 GEL = 1 USD until 1997, when it switched to a floating exchange rate regime.


Exchange rate fluctuations and trends




The exchange rate between the Russian ruble and the Georgian lari has fluctuated significantly over the years, depending on various economic and political factors. The following table shows the average annual exchange rates of rubl lari from 1996 to 2022, according to Xe.com:


YearAverage RUB/GEL


19960.0004


19970.0005


19980.0008


19990.0011


20000.0016


20010.0021


20020.0029


20030.0037


20040.0044


20050.0051


20060.0061


20070.0073


20080.0089


20090.0095


20100.0101


20110.0114


20120.0124


20130.0134


20140.0157


20150.0248*


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*The highest annual average exchange rate of rubl lari in history.


The table shows that the rubl lari exchange rate has increased steadily over time, meaning that the Russian ruble has depreciated against the Georgian lari, or vice versa, the Georgian lari has appreciated against the Russian ruble. The most dramatic increase occurred in 2015, when the rubl lari exchange rate reached its highest level ever, at 0.0248, due to the economic crisis and sanctions that hit Russia.


Major events and influences on rubl lari




The exchange rate of rubl lari has been influenced by many major events and factors, both internal and external, that have affected the economies and politics of Russia and Georgia. Some of the most notable ones are:



  • The 1998 Russian financial crisis, which caused a massive devaluation of the Russian ruble and a default on its sovereign debt.



  • The 2003 Rose Revolution in Georgia, which brought a pro-Western government to power and initiated democratic and economic reforms.



  • The 2006 Russian ban on Georgian wine and mineral water imports, which reduced Georgia's export revenues and strained the bilateral relations.



  • The 2008 Russo-Georgian War, which erupted over the disputed regions of South Ossetia and Abkhazia and resulted in a military defeat and territorial losses for Georgia.



  • The 2014 annexation of Crimea by Russia, which triggered international sanctions and isolation for Russia and increased tensions with Georgia.



  • The 2020 COVID-19 pandemic, which caused a global economic slowdown and a decline in oil prices, affecting both Russia's and Georgia's GDP growth and fiscal balance.



  • The 2021 parliamentary elections in Georgia, which resulted in a political deadlock and protests over alleged electoral fraud and polarization.



  • The 2022 Winter Olympics in Beijing, which boosted tourism and trade between Russia and China, but also raised human rights concerns and boycott calls from some Western countries.[^15 ^]^



Current situation of rubl lari




Economic and political factors affecting rubl lari




The current situation of rubl lari is influenced by various economic and political factors that affect the supply and demand of the currencies, as well as the market sentiment and expectations. Some of the most relevant factors are:



  • The GDP growth and inflation rates of Russia and Georgia, which indicate the economic performance and stability of the countries. According to the World Bank, Russia's GDP growth was 1.3% in 2021 and is projected to be 2.9% in 2022, while Georgia's GDP growth was -6.1% in 2021 and is projected to be 4.3% in 2022. Russia's inflation rate was 6.5% in 2021 and is expected to be 5.5% in 2022, while Georgia's inflation rate was 7.7% in 2021 and is expected to be 5.0% in 2022.



  • The interest rate and monetary policy of the central banks of Russia and Georgia, which affect the availability and cost of money in the markets. According to Trading Economics, the Bank of Russia's key interest rate was 6.5% as of June 18, 2023, while the National Bank of Georgia's refinancing rate was 9.5% as of June 16, 2023. The Bank of Russia has been raising its interest rate since March 2021 to curb inflation and support the ruble, while the National Bank of Georgia has been lowering its interest rate since April 2020 to stimulate the economy and ease the lari's appreciation.



  • The trade balance and foreign exchange reserves of Russia and Georgia, which indicate the external position and strength of the countries. According to Trading Economics, Russia's trade balance was $15.8 billion in April 2023, while Georgia's trade balance was -$0.4 billion in May 2023. Russia's foreign exchange reserves were $590.9 billion as of June 11, 2023, while Georgia's foreign exchange reserves were $4.0 billion as of May 31, 2023. Russia has a large trade surplus and foreign exchange reserves, which support the ruble's value, while Georgia has a chronic trade deficit and low foreign exchange reserves, which put pressure on the lari's value.



  • The political stability and security of Russia and Georgia, which affect the confidence and risk appetite of the investors and traders. Russia and Georgia have different political systems and orientations, which create tensions and uncertainties in their bilateral relations. Russia is a federal semi-presidential republic with a strong authoritarian leader, Vladimir Putin, who has been in power since 2000. Georgia is a unitary parliamentary republic with a pro-Western orientation, but also faces internal divisions and opposition protests. Both countries face external threats from regional conflicts, such as the Nagorno-Karabakh dispute between Armenia and Azerbaijan, or the Ukraine crisis. These factors can increase the volatility and unpredictability of rubl lari.



Opportunities and challenges for rubl lari traders and investors




Rubl lari offers both opportunities and challenges for traders and investors who want to profit from its movements or hedge their exposure to it. Some of the advantages and disadvantages of rubl lari are:



  • Rubl lari is a relatively exotic and niche currency pair, which means that it has low liquidity and high spreads, but also high potential returns and diversification benefits.



  • Rubl lari is influenced by many factors, both fundamental and technical, which means that it requires careful analysis and research, but also offers multiple trading strategies and signals.



  • Rubl lari is subject to high volatility and risk, which means that it can generate large profits or losses in a short period of time, depending on the market conditions and leverage used.



  • Rubl lari is affected by geopolitical events and developments, which means that it can experience sudden shocks or trends, depending on the news flow and sentiment.



Future prospects and predictions for rubl lari




The future prospects and predictions for rubl lari depend on how the economic and political situation of Russia and Georgia evolves in the coming months and years. Based on the current trends and forecasts, some of the possible scenarios and outcomes for rubl lari are:



  • If Russia's economy recovers from the COVID-19 pandemic and the oil price rebounds, and if Georgia's political crisis is resolved peacefully and its economic reforms continue, then rubl lari could stabilize or decline slightly, as the ruble gains strength and the lari loses some of its appreciation pressure.



  • If Russia's economy suffers from prolonged sanctions and isolation, and if Georgia's political situation worsens or escalates into violence, then rubl lari could rise sharply, as the ruble loses value and the lari becomes a safe haven currency.



  • If Russia and Georgia improve their diplomatic relations and increase their trade and tourism cooperation, and if both countries join the regional integration initiatives, such as the Eurasian Economic Union or the European Union, then rubl lari could converge or harmonize, as the currencies become more aligned and compatible.



Conclusion




Summary of the main points




In conclusion, rubl lari is an interesting and important currency pair that reflects the economic and political relationship between Russia and Georgia. Rubl lari has a long and complex history of fluctuations and influences, depending on various internal and external factors. Rubl lari also has a dynamic and uncertain future, depending on how the situation of Russia and Georgia changes in the coming months and years. Rubl lari offers both opportunities and challenges for traders and investors who want to profit from its movements or hedge their exposure to it.


Recommendations and tips for rubl lari users




If you want to use rubl lari effectively, here are some recommendations and tips that you should follow:



  • Do your homework. Before you trade or invest in rubl lari, make sure you understand the basics of the currencies, such as their symbols, codes, denominations, exchange rates, etc. You should also research the economic and political situation of Russia and Georgia, as well as their bilateral relations and regional context.



  • Stay updated. The exchange rate of rubl lari can change rapidly and unpredictably, depending on the market conditions and news flow. You should always monitor the latest developments and trends that affect rubl lari, such as GDP growth, inflation, interest rates, trade balance, foreign exchange reserves, political stability, security threats, etc.



  • Be flexible. The exchange rate of rubl lari can vary significantly across different platforms and providers. You should always compare the prices and fees of different sources before you buy or sell rubl lari. You should also be ready to adjust your strategy and position according to the changing market signals and opportunities.



  • Be cautious. The exchange rate of rubl lari can be volatile and risky, especially in times of crisis or uncertainty. You should always use proper risk management tools and techniques, such as stop-loss orders, limit orders, hedging instruments, diversification methods, etc. You should also never invest more than you can afford to lose.



FAQs




What is the best time to trade rubl lari?




The best time to trade rubl lari is when the markets of both Russia and Georgia are open and active, which is usually from 7:00 AM to 5:00 PM Moscow time (GMT+3) or from 10:00 AM to 8:00 PM Tbilisi time (GMT+4). During this time, you can expect higher liquidity, lower spreads, and more trading opportunities for rubl lari.


What are the risks of trading rubl lari?




The risks of trading rubl lari include currency risk, which is the risk of losing money due to unfavorable exchange rate movements; liquidity risk, which is the risk of not being able to buy or sell rubl lari at a desired price or quantity; political risk , which is the risk of facing adverse political events or actions that affect rubl lari; and market risk, which is the risk of facing unfavorable market conditions or events that affect rubl lari.


What are the benefits of trading rubl lari?




The benefits of trading rubl lari include profit potential, which is the opportunity to make money from favorable exchange rate movements; diversification, which is the advantage of adding a different and uncorrelated currency pair to your portfolio; and learning, which is the benefit of gaining more knowledge and experience about the currencies and markets of Russia and Georgia.


How can I get rubl lari?




You can get rubl lari by buying or selling it on various online platforms, such as forex brokers, currency exchanges, peer-to-peer platforms, etc. You can also get rubl lari by traveling to Russia or Georgia and exchanging your local currency for rubles or laris at banks, ATMs, hotels, airports, etc. You can also get rubl lari by receiving it as a payment or a gift from someone who uses these currencies.


How can I store rubl lari?




You can store rubl lari in different ways, depending on your preferences and needs. You can store rubl lari in cash, which is the physical form of the currencies, but you need to keep it safe and secure from theft or damage. You can store rubl lari in a bank account, which is the electronic form of the currencies, but you need to pay fees and charges for opening and maintaining the account. You can store rubl lari in a digital wallet, which is the online form of the currencies, but you need to choose a reliable and trustworthy provider and protect your password and private key. 44f88ac181


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