The usual purchase of American currency to protect savings from inflation is losing its former effectiveness. Financial analysts of the Investment Capital Ukraine company note that the usual accumulation of capital in dollars has ceased to be the most profitable financial solution. The main factor here is not so much the current fluctuation of indicators on the scoreboard of Ukrainian exchangers, but the level of stability and behavior of this currency in the global world market. For citizens who are focused solely on the formation of cash reserves in a safe asset, experts highlight other currencies. More stable options for keeping cash are currently considered to be euros or British pounds.
Government bonds as a profitable alternative
The Ministry of Finance of Ukraine proposes to completely change the approach to saving money and consider purchasing domestic loan securities. According to the department’s estimates, investing in national hryvnia instruments demonstrates a higher return, which covers the effects of exchange rate fluctuations.
The essence of this instrument is that OVDP are government debt securities. The Ministry of Finance issues them for sale to cover the budget deficit and attract money into the country. By purchasing a bond, a citizen becomes a creditor of the state, which assumes a legal obligation to return the entire amount to the depositor and pay a fixed interest rate within the term established by the contract.
Exact figures: when OVDP are more profitable than foreign currency
Currently, the market value of the dollar has been fixed at around UAH 44. At the same time, the annual rate of return on the purchase of hryvnia government securities is at 15.5%.
ICU analysts have made calculations and determined the economic feasibility point for both options. An investment in national bonds will bring real profit until the market price of the US dollar crosses the line of UAH 51.
According to the forecasts of most specialized specialists, such a scenario is unlikely by the end of this year – the dollar is unlikely to cross the threshold of 50 UAH, and its probable maximum value will be 46 UAH. Accordingly, investing capital in government securities will bring net income to investors throughout this period.
