Precautions against currency collapse

Generally speaking, Ukrainians are pretty well insulated against currency collapse by the fact that most have relatives who grow their own food. They’ve also experienced them before — in 1991 and 1994 (See my pics of their destroyed money).

As of now, a collapse is by no means inevitable. Things may stabilize and drive the exchange rate back down to the 8:1 which Ukraine’s central bank has tried to maintain.

However, now may be a good time for my Ukrainian friends to take precautions.

Why? Although the hryvnia’s value against the dollar has slipped 25%, and the cost of fuel has increased by about 10%, prices in the markets remain stable . . . for now.

It is likely for retail prices to chase the price of fuel and the exchange rate.

Here are some practical steps to protect oneself and one’s family:

– Keep 1 to 2 week’s worth of drinking water and food at home, especially dried and frozen foods, as well as cooking oil.

– Buy batteries, candles and if appropriate, fuel.

– If you were planning to make purchases in the near and medium term, make them now.

– Realize that a currency collapse is not the end of commerce, but an interruption of it. The complex networks of trade needs time to figure out a new medium of exchange.

– In the past cigarettes have been used as a temporary medium of exchange. So have foreign currencies.

– As a long-term strategy, learn about gold, silver and bitcoin.

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