Ukrainians Drawn to Hryvnia as Central Bank Gets Lifeline - Bloomberg

Ukrainians Drawn to Hryvnia as Central Bank Gets Lifeline - Bloomberg:

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Vincent Mundy/Bloomberg

Shoppers walk along a street in central Kiev, Ukraine.

For Dmytro Arsentiev, the 20 percent interest he gets on his hryvnia savings at Ukraine’s No. 2 bank, offers enough protection from currency swings.
“Running around hectically like a rabbit to change money isn’t profitable now,” the 63-year-old pensioner, a retired computer consultant, said by phone from Kiev, the capital. “You lose on the conversion costs.”
Ukrainians, who endured a 40 percent devaluation five years ago, are ignoring warnings from banks including Goldman Sachs Group Inc. that another is on the way as lenders offer high deposit rates and the hryvnia holds firm to the dollar. After selling the currency en masse in 2012 in anticipation of a drop after elections, they’ve been net buyers for four consecutive months, the longest streak since 2005."

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