Currency, FX & Transfers

Managing multiple currencies, foreign exchange, and international transfers in Georgia is straightforward thanks to modern banking infrastructure and competitive exchange markets. This comprehensive guide covers everything you need to know about currency management in Georgia.

The Georgian Lari (GEL)

The Georgian Lari (currency code GEL, symbol ₾) has served as Georgia's national currency since 1995, replacing the temporary coupon currency used after Soviet independence. The lari is subdivided into 100 tetri, though tetri coins are increasingly uncommon in daily transactions due to low denominations becoming impractical.

Exchange rates fluctuate based on market conditions, with recent years showing the lari trading around 2.6-2.8 GEL per US dollar. The National Bank of Georgia manages monetary policy and intervenes in currency markets when necessary to prevent excessive volatility. While the lari has experienced some depreciation over its history, it remains relatively stable compared to many emerging market currencies.

The lari is used for all local transactions within Georgia including salaries, rent, utilities, retail purchases, and government services. While some high-value transactions like property purchases may be negotiated in USD or EUR, legal payments occur in lari at official exchange rates. Understanding lari usage is essential for daily life in Georgia.

Banknotes are issued in denominations of 5, 10, 20, 50, 100, and 200 lari. The 200 lari note was introduced in recent years to accommodate inflation and improve cash handling efficiency. Coins exist for 1 and 2 lari, plus tetri denominations, though coins under 50 tetri have largely disappeared from circulation. Georgian currency features historical figures, cultural symbols, and architectural landmarks, making notes attractive collectibles.

Multi-Currency Banking

Multi-currency accounts represent one of Georgian banking's most valuable features. Most banks allow holding GEL, USD, EUR, GBP, CHF, and sometimes RUB or other currencies within single account structures. Account holders maintain separate balances in each currency, viewing all balances through unified online banking interfaces.

Currency conversion between account currencies happens instantly through mobile apps or online banking. Simply specify source currency, destination currency, and amount to convert. Banks execute conversions at their current exchange rates, updating balances immediately. This eliminates external money changers for most currency needs, providing convenience and competitive rates.

Exchange rates offered by banks for account conversions typically fall within 0.5-1.5% of mid-market rates for major currencies like USD and EUR. Rates are displayed transparently in banking apps before confirming conversions. Some banks charge no explicit conversion fees, building margins into exchange rates. Others charge small percentage fees (0.1-0.3%) plus exchange rate spreads. Comparing banks' conversion costs is worthwhile for frequent converters.

Strategic currency management enables optimizing exchange costs. Receiving payments in original currencies avoids unnecessary conversions. Converting currencies when rates favor your position rather than converting on schedule can improve outcomes. Maintaining buffers in multiple currencies provides flexibility to wait for favorable exchange movements rather than converting urgently at poor rates.

International Wire Transfers

SWIFT network connectivity enables Georgian banks to send and receive international wire transfers globally. Outgoing transfers require providing beneficiary name, bank name and address, SWIFT/BIC code, account number or IBAN, and sometimes intermediary bank details. Most banks provide online forms guiding users through required information, reducing errors.

Processing times for international transfers typically range 1-3 business days for major currencies to developed markets. Transfers to exotic currencies or developing countries may take 5-7 business days. Urgent transfers can sometimes be expedited for additional fees, delivering within 24 hours. The National Bank of Georgia requires reporting for transfers exceeding certain thresholds, occasionally causing brief delays for compliance verification.

Outgoing transfer fees typically range $10-30 per transfer depending on the bank, currency, and amount. TBC Bank and Bank of Georgia charge toward the higher end but provide reliable service and good correspondent banking relationships. Smaller banks like Credo sometimes charge $10-15, making them attractive for frequent international transfers. Some banks offer free transfers for premium accounts or high-balance customers.

Incoming international transfers are usually free or low-cost ($0-10) at Georgian banks. However, correspondent bank fees deducted by intermediary banks in the transfer chain can reduce amounts received. These fees, typically $10-25, are charged by foreign banks routing the transfer and appear as deductions from expected amounts. Using banks with strong correspondent relationships minimizes intermediary fees.

Documentation requirements for international transfers vary by amount and purpose. Transfers under $10,000 typically require no supporting documents beyond standard identification. Larger transfers may require invoices for business payments, contracts for services, property purchase agreements for real estate, or gift letters for personal transfers. Providing clear documentation proactively speeds processing and avoids compliance delays.

Alternative Transfer Services

Wise (formerly TransferWise) operates in Georgia, providing low-cost international transfers through their multi-currency account system. Wise typically offers exchange rates within 0.3-0.5% of mid-market rates, superior to most banks. Transfer fees range 0.5-1.5% depending on currencies and amounts. For frequent international transfers, Wise often saves significant money versus traditional banking.

Revolut, the digital banking platform, accepts Georgian residents for account opening. Revolut provides multi-currency accounts, competitive exchange rates (within limits), and efficient international transfers. Free tier accounts offer substantial functionality, while premium tiers provide enhanced features. Many expats maintain both Georgian bank accounts and Revolut accounts for optimal flexibility.

PayPal operates in Georgia for receiving payments but has limitations for sending payments from Georgian accounts. Account holders can receive international payments and withdraw to Georgian bank accounts. For businesses receiving international client payments, PayPal provides familiar payment methods many clients prefer. Fees typically range 2.9-4.4% plus fixed fees per transaction.

Cryptocurrency can serve as an alternative international transfer method, particularly for large amounts or difficult currency corridors. Converting fiat to cryptocurrency, transferring crypto, and converting back to destination currency sometimes provides better economics than traditional banking, especially for amounts over $10,000. However, price volatility and exchange fees must be carefully analyzed. This approach suits financially sophisticated users comfortable with crypto mechanics.

Currency Exchange Services

Physical currency exchange offices (money changers) operate throughout Georgian cities, particularly concentrated in downtown areas and near tourist attractions. These establishments typically offer better rates than banks for cash exchanges, particularly for large amounts where negotiation is possible. Exchange offices compete aggressively, creating favorable market conditions for consumers.

Comparing rates between multiple exchange offices before large exchanges is worthwhile. Rates vary by 1-3% between best and worst offices for the same currency. Exchange offices display rates prominently, enabling easy comparison. For amounts over $1,000, politely asking for better rates often succeeds, with offices typically improving 0.2-0.5% to secure business.

Banks also provide currency exchange services at branches, though rates are typically 0.5-1.5% less favorable than dedicated exchange offices. The convenience of banking while exchanging and the security of bank locations may justify slightly worse rates for some users. Bank exchange services suit individuals without time to visit multiple exchange offices.

Online currency exchange through banking apps provides the most convenient option for many users. Simply convert between currencies held in multi-currency accounts at displayed rates. While rates may not match the absolute best exchange office rates, the convenience of instant conversion without visiting physical locations and the safety of not carrying cash make online conversion attractive for amounts under $5,000.

Exchange Rate Information and Monitoring

The National Bank of Georgia publishes official exchange rates daily, used for government transactions and tax calculations. These rates, available on the NBG website, serve as reference rates for the market. Commercial rates offered by banks and exchange offices typically fall within 1-2% of NBG official rates for major currencies.

Real-time market rates are available through financial websites and apps like XE.com, Google Finance, and Bloomberg. These mid-market rates represent the midpoint between buy and sell prices in global currency markets. Comparing actual rates offered by Georgian providers to mid-market rates reveals the markup or spread being charged.

Setting up rate alerts through banking apps or currency monitoring services enables capitalizing on favorable exchange movements. When GEL strengthens against USD (meaning fewer GEL needed per dollar), converting USD to GEL for upcoming expenses becomes advantageous. Conversely, when GEL weakens, retaining USD or converting GEL to USD for savings preserves value.

Currency Risk Management

Expats earning in foreign currencies but spending in GEL face currency risk as exchange rate movements affect purchasing power. When GEL weakens against your income currency, Georgian living costs effectively decrease. When GEL strengthens, costs increase relative to foreign income. This volatility can swing living costs 10-20% over periods of months.

Hedging strategies include maintaining 3-6 months of expenses in GEL to reduce the need for unfavorable emergency conversions, diversifying holdings across multiple currencies rather than concentrating in one, and timing large conversions when rates favor your position rather than converting on fixed schedules. Natural hedging through earning GEL income reduces currency risk for those working in Georgia.

Businesses with international revenues or expenses face similar currency risks. Companies can reduce exposure by matching currency of revenues with expenses where possible (receiving USD and paying USD expenses), maintaining reserves in multiple currencies, and using multi-currency accounts to avoid forced conversions at unfavorable times. Forward contracts and other hedging instruments are available through major banks for larger businesses needing sophisticated risk management.

Tax Implications of Currency Gains

Currency gains can create tax obligations in Georgia and other jurisdictions. When holding foreign currency that appreciates against GEL, converting back to GEL at a gain may create taxable income. However, practical enforcement of currency gain taxation on ordinary currency holdings is limited. Consult tax advisors for specific situations involving large currency positions or frequent trading.

For US citizens, foreign currency gains exceeding certain thresholds create US tax obligations regardless of Georgian treatment. Currency transactions must be tracked and reported on US tax returns when gains exceed IRS limits. Professional tax advice is essential for US citizens managing multi-currency positions.

Practical Tips for Currency Management

Maintain operating expenses in GEL to avoid conversion friction on daily spending. Convert foreign currency earnings to GEL in batches rather than daily to reduce transaction frequency and enable selective timing. Keep emergency reserves in stable currencies like USD or EUR to preserve value during GEL volatility. Use multi-currency accounts to hold multiple currencies simultaneously without complex account management.

For large currency needs (over $10,000), compare banks, exchange offices, and alternative services like Wise. The savings can reach hundreds or thousands of dollars on large transfers. Set up rate alerts for currencies you monitor, enabling opportunistic conversions when rates are favorable. Document all international transfers and maintain records for tax reporting in all relevant jurisdictions.

Avoid airport currency exchanges except for small emergency amounts, as rates are typically 5-10% worse than city exchange offices. ATM withdrawals for foreign currency often provide better rates than airport exchanges while offering convenience. Research your bank's international ATM fee policies before travel.

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