How to save savings in the face of currency fluctuations: economist’s advice

Ukrainians should diversify their savings in order to protect their own money. The ideal scheme for storing savings: a third in dollars, a third in euros, a third in military bonds or in domestic government bonds. This recommendation was given by economist Oleg Getman in an exclusive commentary for UNN.

While the dollar is weakening and the euro is strengthening. But this certainly does not mean that if you have savings in dollars, you should urgently exchange them for euros. After all, this situation can change quickly. The ideal scenario is to distribute savings in different currencies. A third in dollars, a third in euros, and another third or even half in military bonds or domestic government bonds.

The economist also noted that keeping one’s own savings in domestic government bonds is as safe as possible. After all, these are reliable securities guaranteed by the state. And their income rate is higher than inflation – from 14% to 19% per annum. 

Let’s add OVDPs are debt securities issued by the state of Ukraine in order to attract funds to the budget, in particular for financing the army, security, infrastructure and other state needs. Military bonds were issued after February 24, 2022, and funds from them go directly to the needs of defense.

The volume of investments in domestic government bonds in May increased by 10% or more than UAH 286 billion – Ministry of Finance09.06.25, 13:57 • 2590 views

Let us remind youAccording to the co-founder of the first fintech ecosystem in Ukraine, Concord Fintech Solutions, an expert in the field of finance Olena Sosiedka, the US dollar exchange rate in Ukraine may reach 44 hryvnias by the end of the year, and the euro – about 49-50 hryvnias.  

She also added that the euro shows somewhat higher volatility. As of June 18, the euro at the exchange rate of the National Bank of Ukraine costs 48 hryvnias, is traded on the cash market within 48.1-48.6 UAH, and this dynamics, according to the financial expert, has several key explanations. 

The euro is becoming more expensive faster than the dollar, primarily due to high demand from importers – this includes fuel, seasonal products, and goods from the EU. But we also have a significant impact of speculative activity. The euro is often used in “short” arbitrage strategies against the background of fluctuations in the dollar exchange rate against the euro in world markets

The main reasons for the rise in the price of the euro include: global instability of the currency market, an increase in import demand in preparation for the heating season, as well as attempts by individual players to take advantage of the difference in exchange rates in the cash and interbank markets.