Dollar, euro, gold, crypto: where Ukrainians can hide money from depreciation - advice from KIT Group analysts

In the face of accelerating inflation, exchange rate fluctuations and global economic risks, preserving the value of money is just as important as earning it. Ukrainians, who until a few years ago almost exclusively relied on hryvnia deposits, are increasingly looking for alternative instruments to protect their savings today.

According to journalists of the publication "Focus", who interviewed leading experts in the field of finance, in 2024–2025, the interest in multi-currency savings, government bonds, as well as digital assets and gold became logical. However, you should choose carefully: not every popular tool really protects against depreciation.

"Covering official inflation, which is approaching 15%, and the lag of deposit rates behind the actual rate of increase in consumer prices and the cost of living, estimated at 17–20%, is generally difficult to call attractive conditions, let alone an instrument for receiving passive income in hryvnia. The need to pay taxes on such income makes deposits knowingly losing even in relation to government bonds in the case of almost comparable nominal rates of return. The yield of foreign currency deposits remains symbolic and is not able to cover the risks of tying up liquidity," analysts of KIT Group, one of the largest operators in the Ukrainian currency exchange market, told "Focus" about popular instruments.

Experts call government bonds an alternative to deposits. According to analysts, "today you can consider short-term investments in hryvnia instruments for a period of no more than 1–4 months. This also applies to government bonds." This strategy will avoid currency risks and lock in profitability in the short term.

Regarding government bonds, it would be a logical tactic to purchase securities for "temporary parking" of free funds without currency and exchange rate risks. The yield of government bonds is now able to at least cover inflation. Longer-term hryvnia investments, in our opinion, are risky given the likely acceleration of inflation and a possible exchange rate shift in the second half of the year – probably in the fall

Another trend is the growing demand for the euro. Due to the US trade policy, the change in the global balance of currencies and expectations of a weakening dollar, the euro strengthened its position in April not only in world markets, but also in Ukraine. According to KIT Group experts, "in the context of global political uncertainty and structural weakening of the dollar, the optimal strategy remains a multi-currency portfolio".

We see a trend of growing demand for the euro — not only in Ukraine, but also globally. In practice, this means the possibility of using the dollar as a currency of liquidity or hedge, and the euro — for long-term savings

As for digital assets, KIT Group believes that "any crypto asset — stablecoins or classic crypto — is not a replacement for the usual fiat currencies, but an additional level of currency diversification and support for the liquidity of your savings portfolio." In particular, among stablecoins, experts advise paying attention to USDC, which is pegged to the US dollar.

As for gold, despite its ability to update historical highs, experts do not consider it an instrument for quick earnings. "Investments in gold are primarily an instrument for preserving, not increasing capital. Its advantage is protection against inflation and currency fluctuations in the long term (from five years or more). The formation of a "gold reserve" in your savings portfolio is appropriate only after the formation of reserves in classic currencies," KIT Group analysts noted.