Investing in Ukraine: Where to invest to preserve capital
Those who have worked all their lives and saved money for a rainy day always face the question of how to preserve what they have earned
This problem is especially pressing for those in Ukraine, where the hryvnia is not considered a stable currency and its exchange rate miraculously remains at 40 hryvnias per dollar.
The ever-increasing inflation does not add to optimism; according to official data, it is 5.1%, but this figure may be significantly understated.
In these circumstances, many people today are faced with the question: where can they invest their money to preserve their capital? Is investing in Ukraine possible now?
Therefore, we will try to understand what investments in Ukraine are still possible, and how high the risk of capital loss is.
Bank deposits – even in wartime, banks still attract clients’ funds into deposits at interest.
Interest rates on deposits in Ukrainian banks range from 10 to 15 percent depending on the term and additional terms, but these are in Ukrainian hryvnia. Interest on dollar and euro deposits is virtually nonexistent, with rates hovering around 0.01%.
Holding hryvnia is quite risky now, and the banking system of a country at war does not inspire confidence.
Real estate – since the start of military action, apartment prices in the western regions of Ukraine have skyrocketed by 60-90%, and the increase occurred not only in hryvnia but also in hard currency.
However, according to most experts, the peak price has already been reached, and a protracted war will only lead to a decrease in real estate values in the long term.
Investing in real estate in Ukraine isn't the best idea right now; experts predict that real estate price growth will be lower than inflation in 2024.
Company shares – expecting investments in Ukrainian company shares to yield significant profits during the war is highly questionable. Most large companies are cutting back or even halting production.
Ukrainian investors are left with no choice but to buy shares of foreign companies, as these securities will not only generate dividend income but may also rise in price.
Fortunately, it is quite possible to make such investments while in Ukraine, through international brokerage companies .
Investment gold – buying a gold bar is a pretty good option in the current circumstances.
But the price of investment gold in Ukrainian banks rose sharply during the war. And now, 9999-purity gold in Ukraine is 10% more expensive than in Poland, for example. Although before the war, the opposite was true.
Once the war is over, prices will drop again and there is a high probability that you will not only not make any money, but will also lose money.
If you're going to invest in gold, it's best to buy it on the exchange - https://time-forex.com/vsebrokery/brokery-zoloto-serebro
In this case, the commission for opening a transaction will be hundreds of times less than at a bank, and you can buy or sell gold in literally a couple of minutes.
Cryptocurrency Investments – Bitcoin's sharp rise has restored confidence in the cryptocurrency market.
Despite the restrictions imposed in Ukraine, it's still easy to purchase cryptocurrency through specialized exchange services. You can find ratings of such services at https://www.bestchange.com/
After you exchange hryvnia for cryptocurrency, you can earn additional income through cryptocurrency staking , which accrues interest similar to a bank deposit.
In summary, investing in Ukraine is possible today, but the most profitable and safest options are available online. Therefore, internet access and non-cash funds are required to invest.
