I just read an article from a guy arguing that he is making 17% on Mintos, unlike most people who only earn 12-14%. He reveals his secret: instead of investing in loans denominated in EUR that pay 12-14% the most, he puts his money into Kazakh Tenge loans, that pay 17-18%. Easy, isn’t it?
If you are wondering why people aren’t staying in rows to invest in KZT loans, lets have a look at the EUR/KZT exchange rate for the last 1 year:
Let’s observe 2 scenarios:
1.You invested 1000 EUR in KZT loans a year ago, for a 17% average return
First, you had to exchange your EUR to KZT. The exchange rate was 1 EUR -=395 KZT a year ago, so you have 395000 KZT to invest. You got 17% interest, that is 67150. So now you have 395000 + 67150 = 462150 KZT. However, if you exchange it to EUR today, with today’s exchange rate you get 462150/426 = 1084 EUR.
2. You invested 1000 EUR in EUR loans a year ago, for a 12% average return
You have now 1120 EUR.
That’s why you should rather invest in EUR.