Ukrainians are increasingly returning to the storage of cash at home. Why is this happening and what risks?In Ukraine, it increased by 7.6% and as of January 1, 2025 reached 822.4 billion hryvnias.
Ukrainians are increasingly preferring to store money outside the banking system, which indicates a change in financial habits in citizens, They state in NBU .
Why do people more often avoid banks?
The main reasons for this trend are the instability of the financial system caused by a full-scale war, because of which some citizens are experiencing due to possible restrictions on withdrawing money from bank accounts. To this is added distrust of banks, which was formed after the crisis of 2014-2015 and mass bankruptcy of many financial institutions.
The role of ease of use of cash remains significant, especially in regions where digital payments have not yet been widely distributed . tracking financial organizations.
Cash in circulation: what the figures say
according to of the National Bank of Ukraine, 2.6 billion banknotes for a total of 814.3 billion hryvnias are contained in cash. As well as 14.8 billion coins for 7.96 billion hryvnias. That is, in total – 822.4 billion hryvnias. Among banknotes, 500 hryvnias are especially popular, which account for 27.3% of the total, which emphasizes the tendency to the advantage of large nominal nominal nominal nominal nominalists.
At the same time, a significant decline in the number of some banknotes was recorded: the face value of 200 hryvnias – by 24.5%, as well as 10 and 5 hryvnias, respectively, by 15%and 11%. This is due to the gradual removal of banknotes of up to 10 hryvnias from circulation and their replacement with coins.
What are the risks of cash storage at home?
financial analysts explain that an increase in cash Appeal is associated with economic instability, uncertainty in the banking system and the desire of citizens to have quick access to funds in case of crisis situations.
At the same time, experts warn that storing money at home has serious risks:
- Theft: Storage of large sums of the house makes a person vulnerable to potential robbers.
- Inflation: In difficult economic conditions, cash can be depreciated, especially if the hryvnia continues to fall.
- Lack of additional income: , unlike deposits or investments, the money lying at home does not bring any Profit.
For effective preservation of funds, one should not be limited only to cash, therefore it is better to consider safer and more promising investment opportunities. One of the safest options is bank deposits in stable financial institutions that provide reliable protection of customer savings. In addition, investment in foreign currency and precious metals are the current way to protect your own funds from negative influence Inflation. should also pay attention to bonds of an internal state loan (OVGZ), which not only have a high level of security, but also make it possible to receive stable additional profit. author : Maria Hitiri Read also:
