Borrow money in Euros?

Euro banknotes are one of the strongest currencies in the world and also one of the most widely used currency because more than 330 million Europeans use it each and every day. Euro is the second strongest reserve currency that is used b many non-euro countries to hold their wealth as well as there are more than a trillion Euro bills in circulation in 2016. Euro is a very strong currency despite some fluctuations between Euro and USD currency trading Euros have been embraced by many of the world countries.

Because Euro is a globally recognized currency and is the main currency in 19 countries then people often much rather buy things in Euros than in some of the local currencies that can be found around the world. And with the full force of Germany, France, Ireland as well as Spain this peace of papers become the de-facto world standard in storing wealth. But because of the strength of Euro it has become also a very popular way to give out and take out various loans and debt. Because Euro banknotes can be used in so much countries then people much rather take out loans in Euros than in some less known currencies as that stability is more important to them than some minor gains from lower annual percentage rates. Because Euro is used widely around the world then the chance of devaluation or hyperinflation is much much lower and that means that anyone who gets his or her salary in euros would much rather take out loans in the same currency than in dollars or any other smaller currency.

If we take a look at the online loan industry then we can clearly see that in countries where the Euro is the main currency these loans are much widely available but in countries like Georgia where these online loans are called “onlain sesxebi”(online loans) or “swrafi sesxebi”(different variation of online loans) then their non-banking loans are just now starting to appear in their local currency “Lari”. And the same thing happened in some smaller countries that just went from their local currencies to Euros where immediately after changing their currency many multinational organizations started to supply various financial offers that were not available before that. Of course we can also speculate that this influx of outside capital is not just because of the currency change but because the economical situation is changing but that simply does not matter. And I will stand by my statement that where Euro goes there investments follow.